In a recent post on X, Fox reporter Eleanor Terrett revealed that influential anti-cryptocurrency politicians, including Senator Elizabeth Warren, are actively opposing the passage of ETH spot ETFs, while SEC staff members have shown limited engagement in promoting the product.

“Based on my conversations with people familiar, meetings in recent weeks have been very much one sided,” she wrote on Sunday. 

While the industry stakeholders have been trying to rally SEC staff to expedite the process, staff members have not shown meaningful engagement as they did with Bitcoin spot ETF applications.

SEC Believes it has Satisfied Crypto Industry with Bitcoin ETFs

According to Terrett, SEC Chair Gary Gensler believes that he has already appeased the industry with the approval of BTC spot ETFs. 

Additionally, influential anti-crypto politicians, such as Senator Warren, who were already displeased with the SEC’s approval of BTC ETFs, are rallying against a similar outcome for ETH.

According to a source mentioned by Terrett, gauging the stance of the SEC staff has been challenging, leaving uncertainty about their thought process. 

However, the source emphasized that if the ETH spot ETF has any chance of approval, SEC staff will need to commence their work soon, considering the May 23 deadline is just over two months away.

“But they’re going to have to start work soon if it’s going to have a shot.”

SCOOP: Optimism about the @SECGov approving the $ETH spot ETFs by May 23rd is waning.

Based on my conversations with people familiar, meetings in recent weeks have been very much one sided, with issuers and custodians trying to rally SEC staff to get the process rolling, but…

— Eleanor Terrett (@EleanorTerrett) March 10, 2024

Back in January, Senator Warren critcized the SEC after the agency greenlighted spot Bitcoin ETFs. 

“If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules,” she said at the time. 

Gensler Remains Silent About ETH ETFs

When questioned about the possibility of a decision and the timeline for ETH ETF approval last month, Gensler said that the process would follow the same approach as Bitcoin (BTC) ETFs. 

Still, he refrained from providing any specific details or a potential timeframe.

On February 6, the SEC postponed its decision on the Invesco Galaxy Ethereum ETF, which followed a delay in December concerning Invesco’s ETF application.

The SEC has also deferred decisions on other Ethereum ETF applications, including those from prominent firms like Grayscale, Fidelity, and BlackRock, the largest asset management company globally.

Notably, other firms such as VanEck and Hashdex are also seeking Ethereum ETF approvals, with Franklin Templeton becoming the latest asset manager to file a spot Ethereum ETF application. 

Meanwhile, Hong Kong-based institutions are actively preparing to launch spot ETFs for Ethereum in a bid to gain an edge over the United States.

It is worth noting that demand for spot Bitcoin ETFs in the US has remained strong since their launch. 

The cumulative net inflow of Bitcoin spot ETFs surpassed $2.24 billion last week, propelling the price of Bitcoin to reach new all-time highs. 

The total asset under management of Bitcoin ETFs currently stands at $55.34 billion. 

The post Anti-Crypto Politicians Rally Against SEC’s Potential Approval of Spot Ethereum ETFs: Fox Reporter appeared first on Cryptonews.

The SEC chair was a guest on Bloomberg TV, where he discussed the turmoil at the NYCB, gas emissions, and cryptocurrencies.

Is Ethereum a Security or a Commodity?

Speaking to the TV hosts, Gary Gensler deferred on how the regulator views Ethereum, even though the market expects the agency to approve a spot ETH ETF following the approval of Bitcoin funds in January.

So far, the agency has delayed its decision to approve or reject any of the Ether ETF applications. This includes applications from major firms such as BlackRock, Galaxy, and Fidelity

Although Gensler didn’t reveal the SEC’s stance on Ether, he commented on the speculative nature of cryptocurrencies, likening their volatility to roller coaster rides.

He expressed concerns about the volatile nature of cryptocurrencies like Bitcoin and Ethereum and advised investors to be cautious when transacting with them.

“One could just look at the volatility of Bitcoin in the last few days. I grew up loving roller coasters,” he explained. “Maybe in my adult years, I don’t ride them as much. But you really should be conscious as the investing public that this is a bit of a roller coaster ride on these volatile assets.”

Despite the agency’s current stance on Ether remaining undisclosed, many in the cryptocurrency sector argue that Ether should be classified as a commodity rather than a security.

Global regulators like the U.S. Commodity Futures Trading Commission and the UK Financial Conduct Authority (FCA) already regard Ether as a commodity. Additionally, the approval of Ethereum Futures ETFs last year further supports this classification.

According to Bloomberg’s ETF analyst James Seyffart, the SEC “implicitly” accepted Ether as a commodity when it green-lit the futures ETFs. He also argued that the SEC didn’t object to ETH being categorized as a commodity when registered with the CFTC. The first ETH futures ETF was listed for trading on October 2.

Here we go … expect more spot #ethereum ETFs filings in the coming days.

NOTE: this is an S-1 and not a 19b-4. Which means it does not start a clock in any way … yet. Expect 19b-4’s soon. https://t.co/sNus2vr5qV

— James Seyffart (@JSeyff) September 6, 2023

Multiple Ethereum ETF Delays Expected

The SEC’s delay in responding to Ether ETF applications does not surprise many market commentators.

The agency can delay its decision up to three times before making a final decision.

Seyffart declared that May 23, 2024, was the key date that could seal Ethereum ETFs’ fate. This is the deadline for the SEC to grant a response on VanEck’s spot ETH ETF application.

Despite the excitement about the VanEck deadline date, however, subdued opinions suggest a spot Ether ETF won’t be as significant as the Bitcoin ETFs. Bloomberg ETF analyst Eric Blachunas believes the spot ETH ETF will be “small potatoes” compared to the trading volumes of Bitcoin ETF.

Since their approval, Bitcoin ETFs have consistently achieved one milestone after another.

Earlier this week, the ten-spot Bitcoin ETFs surpassed their previous trading volume by processing $10B in transaction volume. The high demand for these funds and the approaching Bitcoin halving are major catalysts that could increase the price further.

The post SEC Chairman Gensler Comments on Bitcoin and Ethereum; Avoids Ethereum Security Classification appeared first on Cryptonews.

A Closer Look at Recent Transactions

PeckShieldAlert’s report indicates that the funds were moved to the Ethereum Base layer, a key part of the network. The Base layer handles transactions and smart contracts, and maintains overall security.

Buterin has clarified in the past that transactions from his wallet don’t always reflect his personal investment decisions, however.

#PeckShieldAlert #vitalik.eth – labeled address has transferred 30 $ETH to #Railgun and swapped ~27.63 $ETH for 100K $USDC, bridging them to #Base pic.twitter.com/Iatt1AmjHI

— PeckShieldAlert (@PeckShieldAlert) March 5, 2024

According to the Ethereum co-founder, these transactions could serve various purposes, such as funding redistribution between platforms or donations for charitable causes.

Therefore, this recent transfer shouldn’t be interpreted as a direct market prediction or part of a personal investment strategy.

Taking a cursory look at the Ethereum price chart, the cryptocurrency has shown strong performance lately, with a sharp increase in price while breaking through previous resistance levels.

In short, ETH has surpassed major milestones and traders are showing bullish sentiment. Ethereum’s moving averages confirm this bullish trend, with shorter-term averages above longer-term ones, indicating sustained buying pressure.

The transfer of funds to the Base layer is noteworthy for several reasons. It indicates a direct engagement with the core functionality of Ethereum, suggesting a strategic decision or intention behind the transfer. This could imply a shift in focus towards supporting the fundamental operations of the network or aligning with specific development goals.

Transactions involving the Base layer often involve high amounts of Ethereum, indicating a substantial commitment or movement of assets within the ecosystem. This could affect market dynamics and investor sentiment, as large transactions on the Base layer may signal confidence or strategic positioning within the Ethereum ecosystem.

Vitalik Buterin’s Impact Beyond Ethereum

Vitalik Buterin, one of the most prominent figures in cryptocurrency, has been involved in various projects and initiatives beyond his role in Ethereum. His transactions have been used for several purposes, including donations to charitable causes, as mentioned, as well as funding for innovative blockchain projects.

One good example is Buterin’s donation of $1 billion worth of Shiba Inu (SHIB) tokens to the India Covid Relief Fund in May 2021. This donation supported India’s fight against the COVID-19 pandemic, highlighting Buterin’s commitment to using his wealth for charity.

Additionally, Buterin has funded projects and initiatives promoting blockchain technology and decentralized finance (DeFi). For example, he has supported Gitcoin, a platform that funds open-source projects.

Our response to Vitalik's generous gift to the Gitcoin Community:https://t.co/EyEyqDwuyK pic.twitter.com/EC56VYJ5qX

— Gitcoin (@gitcoin) May 14, 2021

Buterin’s transactions also reflect his support for emerging blockchain projects and protocols. He has been known to invest in and promote projects to improve scalability, privacy, and interoperability in the blockchain ecosystem.

The post Vitalik Buterin’s Recent Ethereum Transaction Raises Eyebrows appeared first on Cryptonews.

Unsurprisingly, on Monday, the SEC delayed a decision to approve the BlackRock spot Ethereum ETF. The SEC now has until May 23 to approve or reject VanEck’s ETF application for an Ethereum ETF tracking the world’s second-largest cryptocurrency.

In January, the SEC approved almost a dozen Bitcoin spot ETFs which has caused a trading frenzy as demand for the products continues to accelerate. One of the eleven Bitcoin spot ETFs approved is the BlackRock iShares Bitcoin Trust trading under the ticker symbol “IBIT.” BlackRock’s ETF is leading the pack and so far has attracted $10 billion in assets under management (AUM) in just under two months since launching.

ETH ETF Approval “Inevitable”

Many product providers are optimistic about the approval of more crypto products believing it is inevitable the SEC will eventually approve Ethereum ETFs due to the demand.

“I think it is inevitable Ether is next,” Hector McNeil, co-CEO and the co-founder of HANetf, a firm which markets and distributes exchange-traded products, told Cryptonews: “If Bitcoin can be approved and meets all the liquidity and asset class thresholds then Ether qualifies,” adds McNeil.

European Market Way Ahead of US With ETH ETPs

Across the pond in Europe, many issuers are sitting smugly after successfully listing numerous cryptocurrency exchange-traded products (ETPs) years ago giving investors exposure to Bitcoin and  Ethereum. Crypto ETP providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour and Fidelity.

“We already have these [ETH ETFs] in Europe we have over $130 million AUM in ETC Group’s Physical Ethereum ETP [trading under the ticker symbol ZETH] and it’s been in the market for over four years,” explains McNeil from HANetf.

Crypto ETPs Versus ETFs – What’s the Difference?

According to CoinShares, a European asset manager specializing in digital assets, in the U.S. the term “ETF” has become the default term for all exchange-traded products that aim to replicate the performance of an underlying asset or benchmark.

“In Europe, due to specific fund regulations, the term “ETF” cannot be used for single assets like bitcoin, gold, or smaller baskets of assets. This regulatory distinction means that when European investors search for a “crypto ETF,” they should be searching for a “crypto ETP” instead,” explains CoinShares on its website.

In February, CoinShares announced investors of the Europe-listed CoinShares Physical Ethereum ETP (ticker: ETHE/CETH) can earn a 1.25% staking reward per year.

CFTC-Regulated ETH Futures Already Trading on CME

Another point worth noting is that the U.S. has regulated futures products which give investors exposure to Ethereum approved and regulated by the Commodity Futures Trading Commission (CFTC).

“The remarkable success of BTC ETFs, coupled with the existing CFTC-regulated ETH futures trading on CME, paints a compelling picture for an imminent ETH ETF,” Chanchal Samadder, head of product at ETC Group, told Cryptonews, in an email.

“The market’s leading ETF issuers have filed applications, signalling their confidence in this development. While the SEC’s stance on whether ETH qualifies as a security remains uncertain, the undeniable momentum, driven by institutional investor demand makes a strong case for approval,” said Samadder.

Staked ETH ETFs Will Face Delays 

One snag Samadder highlights is that a primary attraction of ETH for institutional investors lies in its staking yield. For many investors, staking is a way of earning rewards by simply holding Ethereum.

“We anticipate that staked ETH ETFs will face delays in approval in the US, unlike Europe where these products are readily accessible to investors,” adds Samadder.

Why Does the SEC Delay Decisions?

The SEC’s decision to delay indicates a cautious approach towards cryptocurrency ETFs as the regulator assesses all of the risks and regulatory considerations associated with the products.  It has taken over ten years to approve a Bitcoin spot ETF. Back in July 2013, the Winklevoss twins first filed for a Bitcoin ETF but this was rejected over and over again.

The post ETH ETFs “Inevitable” in US, European Market Way Ahead With ETH ETPs appeared first on Cryptonews.

In November, BlackRock filed an application with the SEC for an “iShares Ethereum Trust” and if approved the trust would be listed on NASDAQ.

In January, the SEC approved almost a dozen Bitcoin spot ETFs which has caused a trading frenzy as demand for the products continues to accelerate. One of the eleven Bitcoin spot ETFs approved is the BlackRock iShares Bitcoin Trust trading under the ticker symbol “IBIT.”

So far, the BlackRock IBIT ETF has attracted $10 billion in assets under management (AUM) in just under two months since launching.

ETH Spot ETF Applications Filed So Far

In February, investment firm Franklin Templeton was the latest asset manager to file a spot Ethereum ETF application with the SEC — joining ​​a long list of asset managers such as BlackRock, Fidelity, Grayscale, VanEck, Invesco and Galaxy, as well as Cathy Wood’s Ark Invests and 21Shares, all of which have submitted applications for a spot Ethereum ETF.

Why the SEC Delays Decisions

The SEC’s delay indicates a cautious approach towards crypto ETFs as the regulator assesses all risks and regulatory considerations associated with these ETFs. It took over ten years to approve a Bitcoin spot ETF in 2024. Back in July 2013, the Winklevoss twins first filed for a Bitcoin ETF but this was rejected over and over again.

Ethereum Gas Fees Surge 

Ethereum remains the second-largest crypto by market capitalization after Bitcoin. Gas fees on the Ethereum network have soared to levels not seen since March 2023, driven by the growing interest in a new experimental token standard known as ERC-404, reports Hassan Shittu from Cryptonews.

On February 9, Ethereum gas prices soared to an average peak of 70 gwei, equivalent to $60 for a standard transaction. Peak gas costs even reached as high as 377 gwei, a level not seen since May 12, 2023. Several factors have contributed to the heightened gas fees, but the primary catalyst has been the hype surrounding the ERC-404 token standard.

The post US SEC Delays Decision on BlackRock’s Spot ETH ETF appeared first on Cryptonews.

A new technological feature called proto-danksharding, aka blobs, is driving this impressive added scale.

Proto-danksharding funnels some of the data from Ethereum’s layer 2s into temporary storage “blobs” of up to one month to offload some of the validating work, making it cheaper and faster.

Polygon Labs’s Vice President of Product, David Silverman, told Decrypt in a recent interview that gas fees may even drop to a level in which crypto companies and projects become happy to cover them.

Gas fees won’t just become miniscule post-Dencun, they may even drop to the point that crypto companies and projects will cover them.

“We’re going to enter a world where most users are just not going to experience gas at all,” said Silverman. “And it becomes abstracted away.”

After Dencun lands, many of the network’s retail users will ultimately get funnelled onto layer 2s, lured by the cheaper fees.

Offchain Labs developer Terence Tsao, part of the team behind Arbitrum, said Dencun is a paradigm shift, marking the moment when Ethereum’s mainnet “fad[es] away into the background,” even while it will continue to underpin the whole network of layer 2s.

After Dencun: Is 2024 Ethereum’s Year

Bitcoin’s exchange-traded fund (ETF) narrative was the biggest boost to crypto prices throughout the end of 2023 and well into the start of 2024.

Spot Bitcoin ETFs are Bitcoin funds, meaning they buy and store vast amounts of the number one cryptocurrency. They also create and redeem their own publicly-traded shares, giving more traditional Wall Street investors and anyone with a brokerage account an onramp into to crypto investing through a regulated structure.

This last point means that investors don’t have the same worries they would have buying and storing the asset directly.

Given the SEC’s round of spot Bitcoin exchange-traded fund (ETF) approvals in January, crypto and ETF analysts are certain that spot Ethereum ETFs are next for a number of reasons.

London-based multinational Standard Chartered Bank recently suggested that approval will happen before May 23 this year. That’s the day when the SEC has to give a verdict on the first recent filing for a spot Ethereum ETF. It makes sense, given the SEC approved Bitcoin ETFs on its January 10 deadline this year.

However, Bitcoin was a different story because the SEC has stated before that BTC is not a security. On the topic of Ethereum’s classification, the regulator has been more ambiguous. If the SEC views Ethereum as a security, there would be more hurdles to approve ETFs, since the SEC would claim much greater oversight on the underlying asset.

Another potential spanner in the works arrived last month. Prometheum, the only SEC-approved crypto company in the US, announced it’s launching its first crypto product in late March: Ether custody.

Analysts Prometheum’s gambit may finally compel the SEC into clarifying whether or not it views Ethereum as a security.

The post Breaking Down Dencun’s Potential to Slash Ethereum Costs appeared first on Cryptonews.

In a blog post, the Ethereum Foundation announced that its highly-anticipated Dencun upgrade would be activated on the Ethereum mainnet on March 13 at 8:55 am EST.

Blobs are coming .oO

Dencun is scheduled for mainnet activation at epoch 29696, occurring March 13 at 13:55 UTC. See the announcement below for client release versions and other useful info about the upgrade https://t.co/9Wa3Y5M5k4

— timbeiko.eth (@TimBeiko) February 27, 2024

Ethereum Dencun Upgrade Requires Staker Updates

“Two years after its ETHDenver inception, dozens of testing calls and devnets later, protodanksharding is finally going live on mainnet,” the Ethereum Foundation said in its post.

Stakers will be required to update their beacon nodes and validator clients to ensure compatibility with the upgrade.

According to Galaxy Digital researcher Christine Kim, “All client teams, except Lodestar, have released final software versions for the Dencun upgrade.”

A successful test of the upgrade took place on the Holešky testnet earlier this month, following previous runs on the Goerli and Sepolia testnets.

The upgrade is set to bring EIP-4844: proto-danksharding to the Ethereum blockchain. Rollups will have the capability to incorporate “blobs” of data on a beacon node under EIP-4844.

“The data in these blobs is not accessible to the EVM and is automatically deleted after a fixed time period (1-3 months),” a post on the Ethereum Organization’s website noted. “This means rollups can send their data much more cheaply and pass the savings on to end users in the form of cheaper transactions.”

The name Dencun is derived from a fusion of star and Devcon city names, according to the Ethereum Foundation. Dencun is a blend of Deneb, representing a star, and the location of Devcon 3, which is Cancun.

Ethereum is Growing

Crypto asset manager Grayscale noted in a blog post last week that the Dencun upgrade is one of several factors contributing to Ethereum entering its maturation phase, noting that the upgrade would help make Ethereum a “more scalable, efficient, and user-friendly platform.”

“Despite increasing conflict with competitors, Ethereum faces a number of tailwinds, including network effects and billions in network revenue, the Dencun upgrade, a flourishing Layer 2 ecosystem, and increasing use cases for its security budget,” Grayscale said. “Moreover, the potential for a spot Ethereum ETF could bring ETH the asset further into the awareness of both institutions and the broader public.”

The post Dencun Upgrade Launches on Ethereum Testnets, Receives Mainnet Launch Date of March 13 appeared first on Cryptonews.

The ETC Group Ethereum Staking ETP (ET32) has been listed on Deutsche Börse’s Xetra platform, offering investors exposure to Ethereum’s price and additional staking rewards, the firm said in a Tuesday press release. 

With a total expense ratio (TER) of 0.65%, ET32 aims to cater to the needs of institutional investors seeking to tap into the potential of Ethereum.

ET32 ETP Aims to Meet Requirements of Institutional Investors

The ET32 ETP tracks the Compass Ethereum Total Return Monthly index, a benchmark designed to meet the requirements of institutional investors.

By utilizing staking, which involves depositing crypto assets on the blockchain to validate transactions, investors can earn not only from Ethereum’s price movements but also from the staking rewards generated. 

However, a 10% staking service fee will be deducted from the total rewards received.

ETC Group has highlighted that the current staking yield market stands at 3.5%, although this figure is subject to change based on network activity and the total amount of Ethereum being staked. 

The ETP’s tracking of the Compass benchmark enables investors to accurately assess performance in relation to the Ethereum staking market, providing a low-cost, liquid, and transparent staking ETP tailored for institutional-grade investors.

Chanchal Samadder, Head of Product at ETC Group, emphasized the growing recognition among institutional investors of the distinctions between Bitcoin and Ethereum. 

As institutional players expand their internal capabilities and teams dedicated to cryptocurrencies, there is a greater appreciation for the unique attributes of Ethereum and its potential value.

ET32 is fully backed by Ethereum, with the digital assets securely stored in cold storage by Zodia Custody and staked through Blockdaemon. 

This arrangement ensures a robust custody solution and reliable staking infrastructure to support investor interests.

CoinShares, another prominent digital asset investment firm, recently introduced staking capabilities for its Ethereum ETP, aiming to reduce costs for investors. 

The CoinShares Physical Staked Ethereum ETP offers an annual staking reward of 1.25%, which helps offset the product’s 1.25% TER.

Ethereum ETFs Could Get Approved by May

Meanwhile, the anticipation of a potential approval for a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission has also sparked optimism in the market.

According to Polymarket, the current odds indicate a 45% likelihood of a spot Ether ETF approval by May 31. 

Furthermore, Bloomberg’s Eric Balchunas forecasts a 70% chance of approval for Ether ETFs.

Bloomberg ETF analyst Eric Balchunas said he expects a 70% chance of an Ethereum spot ETF being approved in May. The SEC needs to make approval decisions on multiple Ethereum spot ETF applications by the end of May, including VanEck, Ark 21Shares and Hashdex. Digital asset lawyer…

— Wu Blockchain (@WuBlockchain) January 11, 2024

As reported, Bitwise crypto research analyst Ryan Rasmussen estimates a 50% chance of approval for a Spot Ether ETF by May.

In a Yahoo Finance interview published Tuesday, he noted that the prospect of these ETFs is indeed attracting attention from institutional investors.

Ether is up 40% year-to-date, trading at $3,203, while Bitcoin is up 32% year-to-date, trading at $55,656.

Furthermore, Coinbase has thrown its support behind Grayscale’s application to convert its Ethereum Trust into a spot Ether ETP. 

The post ETC Group Launches Ethereum-Tracking ETP on Deutsche Börse Xetra appeared first on Cryptonews.

Let’s dive deeper.

Blast TVL Skyrocketing

Blast was introduced on November 21.

Within 48 hours, the team said Blast TVL reached $230 million, with 37,131 users earning yield.

Moreover, that number hit $570 million within a single week.

.@Blast_L2 has achieved a $1 billion TVL in just 35 days, making it the fastest blockchain to reach this milestone pic.twitter.com/1GJmLTpvN7

— Coin98 Analytics (@Coin98Analytics) December 29, 2023

By Friday morning (UTC), Blast’s TVL reached a whopping $1.841 billion.

Hence, given its current trajectory, it’s reasonable to expect it could hit $2 billion in a matter of days.

From Blur to Blast

Blast was created by the team behind the top NFT marketplace BLUR. More specifically, Tieshun Roquerre (aka Pacman) created both.

Blur has quickly risen as a competitor to OpenSea. Currently, it has $36.52 billion in total volume compared to OpenSea’s $9.03 billion, per DappRadar.

Meanwhile, the team members hail from FAANG, Yale, MIT, Nanyang Technological University, and Seoul National University. They have worked on major protocols in DeFi and Web3.

Moreover, Blast is backed by, among others, Paradigm and Standard Crypto, raising $20 million from them.

Excited to collaborate with Paradigm on this! https://t.co/TZbU9nKcg1

— Blast (@Blast_L2) December 8, 2023

Given its background, it’s unsparing that many have high expectations from the project.

Earning Yield

Blast is described as the only Ethereum L2 with native yield for ETH and stablecoins.

The yield comes from ETH staking and Real World Asset (RWA) protocols. While the default interest rate on L2s is typically 0%, it’s 4% for ETH and 5% for stablecoins on Blast, says the website.

“Your balance on Blast compounds automatically,” the team noted.

It’s not just ETH on Blast that earns yield. Stablecoins do too. When you bridge stablecoins like USDC, USDT, and DAI to Blast, it’s deposited in on-chain T-Bill protocols like MakerDAO, and the yield is passed back to Blast users via USDB, Blast’s auto-rebasing stablecoin.

— Blast (@Blast_L2) November 20, 2023

Also, users who bridge stablecoins receive USDB, Blast’s auto-rebasing stablecoin. The yield for USDB comes from MakerDAO’s on-chain T-Bill protocol. It can be redeemed for USDC when bridging back to Ethereum.

The Blast mainnet launch is scheduled for February 2024, and points redemption for May 2024.

To clarify, the key dates are February 2024 and May 2024.

We will announce the exact Mainnet launch date later this week. https://t.co/UO7oD11QEV

— Blast (@Blast_L2) February 19, 2024

An Entire Ecosystem

“We are seeing the ecosystem being formed right under our noses,” collector MoonCat2878 wrote.

“One of the biggest perks of being a depositor (bridger) into BLAST, is the fact that all new protocols, MEME coins and so on will want to draw that $ 1.5 billion TVL towards them.”

Meme coins are a major point here. PUMP will be one of the most recognizable meme coins from day one, said the collector, arguing that it could become a $1 billion meme coin on BLAST.

Moreover, the PUMP team plans to airdrop 10% of the supply towards bridgers. “I am sure all of the others will follow them.”

Fair warning, after reading this you most likely will deposit ETH into @Blast_L2 or add more.

You will use my referral link, because you are grateful: https://t.co/g2HBE7MuSE

============================

I am having ultimate FOMO lying in bed and see the picture clear now …

— MoonCat2878 (@mooncat2878) February 7, 2024

Popular digital art collector Cozomo de’ Medici recently described Blast as “one of the biggest opportunities of 2024,” “an “almost free profit opportunity,” and possibly “one of the most profitable moves I’ve made.”

“Not only I will get Blast reward points – but airdrops and things from the projects building on top of it.”

Blast, he says, is going to be its own ecosystem “that has everything.” This includes DeFi, DEXes, NFTs, memecoins, and more.

Over 3,000 teams are already building on the protocol. Blast users will be getting airdrops from many of these as well.

At the same time, says the collector, “EVERYTHING is incentivized to yield and to bring back value to bridgers.”

At first I ignored this

But now, I feel it's one of the biggest opportunities of 2024

​https://t.co/qKiwjcKi1z

A note I just sent to Minutes readers…

Q: “Cozomo, what do you think of Blast?”

When the community started bridging insane amounts of ETH into Blast, I didn’t pay…

— Cozomo de’ Medici (@CozomoMedici) February 13, 2024

Blast Airdrop Incoming – Are You Eligible?

At the end of November, the team announced that the invite-only Blast Early Access is live. Participants will be rewarded with Blast Points based on how much they bridge and whom they invite.

The Developer Airdrop launched in January with the Blast Testnet.

The Blast Community Airdrop is split between Early Access Members (50%) and Developers (50%).

Those who bridge ETH to Blast start earning points immediately. These go towards the Blast airdrop, which many analysts and commenters expect to be massive.

MoonCat2878 argued the number could be around $1.5 billion, writing:

“Honestly I would be surprised if BLAST wouldn’t launch at around $15-20 billion as an entire new L2 with huge names behind it, a lot of liquidity and so many things building on top of it ready to go.”

While the airdrop amount is unknown, MoonCat2878 opined that “20% would be fair,” and 10% would be the lowest: 5% for users and developers each.

At a $15 billion valuation, the collector said, it would equate to $1.5 billion in airdrop.

Notably, Blur distributed the 5^th largest airdrop in Ethereum history.

Developers Flocking to Blast

Developers seem to find Blast attractive. This indicates a future expansion of the Blast ecosystem.

The EVM-equivalent Blast said that yield enables new revenue streams and novel rewards for end-users.

“Yield as a primitive unlocks new business models for Dapps,” the website says. “Dapps can easily monetize deposits with a single config.”

Also, Blast gives 100% of revenue from gas fees back to developers.

Meanwhile, 146,579 users have deposited nearly $2 billion to Blast in anticipation of the mainnet launch. “When the Blast mainnet launches, the bridge contract will unlock and release all those users and funds to your dapps,” the website told developers.

Moreover, on January 16, the testnet went live, and with it the Big Bang Competition for developers building dapps on Blast long-term.

Excited to help judge this competition!

Get building https://t.co/iPyjOWt7b4

— Dan Robinson (@danrobinson) January 17, 2024

The deadline was February 16, and the team will announce the winners today. There were so many applicants (over 60 hours of submission videos) that the team decided to increase the number of winners per category and allocate more rewards.

Nbd just 60 hours of submission videos (heard somewhere the length was capped at 3 minutes)

They don’t have a small group of devs building, they don’t have a large group of devs building, they have a whole fking village of devs building

Pay attention https://t.co/9XeEpF39tM

— A-Raving-Ape.eth (@a_raving_ape) February 19, 2024

“The LARGEST individual allocation of the Blast Airdrop to date will be distributed to winning teams,”  according to the team. The prizes are non-transferable.

All this said, while a project may sound attractive, understand that it comes with a set of risks and be sure to do your research.

The post Blast’s TVL is Fast-Approaching $2 Billion – Check Eligibility for the Airdrop Here appeared first on Cryptonews.

Arianee Scales with Polygon: Enhanced Luxury Experiences

Arianee’s latest layer will allow clients of the company including Mocler, Mugler, and Audemars Piguet to release their own DPPS and loyalty tokens.

ZK-powered consumer engagement inbound.@ArianeeProject is tapping Polygon CDK to enable brands to leverage the full potential of digital product passports (DPPs) and engagement tokens at large scale.

Through dedicated appchains, Arianee will help brands build highly… pic.twitter.com/9eurRMkLPt

— Polygon | Aggregated (@0xPolygon) February 22, 2024

“We have been early believers in the Polygon ecosystem, and worked on mainnet with many of our clients,” Arianee’s CEO and Co-Founder Pierre-Nicolas Hurstel said. “Today, our decision to build a powerful L2 appchain powered by Polygon CDK allows us to take another momentous stride toward building blockchain-based solutions where performance, scalability, and connectivity are the norm.”

An In-Depth Look at DPPs and Engagement Tokens

According to Web 3 Protokol, DPPs “are a tool for collecting and sharing product data throughout its entire lifecycle.” DPPs have gained notoriety in recent years for their utility in tracking sustainability across governments and organizations.

Most recently, the European Union (EU) announced its plans to move forward with DPPs, with regulation expected to become finalized in 2024 and implementation beginning in the following years.

Use cases for the emerging technology include preventing counterfeit products, authentication of ownership, traceability, and increased transparency between consumers and participating brands, among others.

According to the press release, the Arianee protocol has minted “more than 1.7 million DPPs and engagement tokens” since 2018. Data from Polygon’s website alleges that “tokenized rewards represent a new frontier in customer engagement and loyalty strategies” by “leveraging blockchain and tradability to make rewards more engaging, dynamic, and valuable.”

Most recently, luxury watch brand Breitling launched their own NFTs for customers to ensure proof of ownership as well as unlock access to premium services.

The Future of Branding With Polygon CDK

“We believe that Polygon CDK holds the potential to revolutionize industries far beyond the realms of crypto and finance,” Polygon Labs CEO Marc Boiron said. “We are happy to see Arianee, a platform working with some of the finest global brands on real-life use cases, start building with Polygon CDK.”

Arianee and Polygon are slated to host a joint dinner with their layer 2 announcement at NFT Paris on Thursday. Updates regarding the project can be found at Polygon’s development blog.

The post Luxury Brand Protocol Arianee Set to Launch New Polygon CDK-Powered Chain appeared first on Cryptonews.

Taking to social media on Wednesday, Buterin highlighted the potential risks associated with complex Layer 2 networks and urged for a more balanced approach in the development of blockchain ecosystems.

In the blockchain community, there is a prevailing belief that Layer 1 networks should prioritize simplicity to minimize the risk of critical bugs and attack vectors. 

Consequently, the responsibility for handling more complex features falls upon Layer 2 networks, which are designed to provide scaling solutions.

Honestly I'm about 3x less confident in the "simplify L1 even at the expense of more complicated L2s" concept than I was five years ago. The challenge is that when you can trade off between L1 bug risk and L2 bug risk, it's not actually clear that the latter is better!

— vitalik.eth (@VitalikButerin) February 21, 2024

Vitalik Buterin Notes Consequences of Bugs in L2

Buterin emphasized the potential consequences of critical bugs in Layer 2 networks. 

He said that while a Layer 1 blockchain can recover relatively quickly from a consensus failure, such failures in Layer 2 networks could result in permanent loss of funds for users. 

“If you have an L1 consensus failure, stuff breaks core devs scramble for a day, but eventually things are alright again. With an L2 bug, people could permanently lose lots of money.”

He cautioned against the increasing complexity of Layer 2 solutions and the associated risks they entail.

Proposing an alternative approach, Buterin suggested that adding sophisticated features to Layer 1 networks could alleviate the burden on Layer 2 networks, enabling them to remain reasonably simple. 

By reducing the complexity of Layer 2 solutions, the risks of critical bugs and security vulnerabilities could be mitigated, ultimately protecting user funds and enhancing overall system reliability.

“So I would say it’s can actually be worth adding some pretty sophisticated L1 features to reduce the code burden of L2s and allow them to be reasonably simple.”

The crypto ecosystem has witnessed significant growth and development over the past decade, with various blockchain ecosystems emerging around Layer 1 networks such as Bitcoin, Ethereum, and Solana. 

As developers strive to create more complex on-chain applications, the focus has shifted towards scaling solutions like Layer 2 networks. 

These networks bundle transactions executed on a separate network and submit them in batches for validation on Layer 1, enhancing throughput and reducing transaction fees.

Ethereum Layer 2 Ecosystem Continues to Expand

Ethereum’s Layer 2 ecosystem has experienced substantial expansion over the past year and a half, with a total value locked (TVL) surpassing $27 billion. 

In October 2023, transaction activity on Layer 2 networks exceeded that of the Ethereum mainnet, with these networks now routinely processing five times as many transactions, according to L2beat.

As reported, Ethereum-based layer 2 network Arbitrum now has a market share of 49.17% among layer 2 networks, far surpassing number two on the list, Optimism Mainnet, with its 28.85% market share.

The network has also seen a consistent increase in its TVL at least since October last year, rising about 50% from $1.66 billion in October to the current value of $2.51 billion, data from DeFi tracking site DefiLlama showed.

The upcoming Ethereum Dencun upgrade, incorporating changes proposed by EIP-4844, is expected to reduce rollup transaction costs, benefiting layer 2 solutions like Arbitrum by lowering gas fees and improving network capacity.

The post Vitalik Buterin Voices Concern About Complex Layer 2 Solutions appeared first on Cryptonews.

In a 27-page letter shared on February 22, Coinbase’s chief legal officer, Paul Grewal, outlined the legal, technical, and economic rationale for the Securities and Exchange Commission (SEC) to approve an Ether-based ETP.

One of Coinbase’s key arguments was that Ether should be classified as a commodity rather than a security.

The exchange pointed to the Commodity Futures Trading Commission’s approval of Ether futures, statements by SEC officials, and court rulings as evidence supporting this classification.

SEC Not Objecting to Treating Ether as Commodity

Coinbase emphasized that the SEC has not objected to the treatment of Ether as a commodity by the CFTC, reinforcing its stance.

“Our letter lays out what anyone knows who’s paid even the slightest bit of attention to the subject: ETH is not a security,” Grewal said.

He added that both the SEC and the market have treated Ether as a commodity, both before and after the Ethereum network’s upgrade.

Our letter lays out what anyone knows who's paid even the slightest bit of attention to the subject: ETH is not a security. In fact, before and after the Merge, the SEC, the CFTC, and the market have treated ETH not as a security but a commodity. 2/6

— paulgrewal.eth (@iampaulgrewal) February 21, 2024

Coinbase also presented additional arguments in its letter.

It highlighted Ethereum’s proof-of-stake consensus mechanism, which demonstrates strong governance and mitigates risks of fraud and manipulation.

The exchange emphasized that the SEC’s approval of spot Bitcoin ETPs should equally apply, if not more strongly, to an Ethereum ETP.

Market data shows that ETH ownership and trading activity are dispersed, indicating a mature and efficient market.

The exchange also mentioned the technological and operational security mechanisms inherent in Ethereum’s blockchain, which significantly limit susceptibility to fraud and manipulation.

Coinbase cited its own sophisticated market surveillance measures, including a partnership with the Chicago Mercantile Exchange (CME), to monitor trading activities on its platforms.

The letter was submitted in response to a proposed rule change by NYSE Arca, which aims to list and trade shares of the Grayscale Ethereum Trust (ETHE) as an Ethereum ETP.

The SEC has requested public comments on the proposed rule change before making a decision.

Spot ETH ETFs Could Bring Centralization Risks

Meanwhile, there has been concerns regarding the concentration risk associated with spot Ethereum ETFs that include staking.

Analysts from S&P Global recently warned that the introduction of staking in ETFs could impact the mix of validators participating in the Ethereum network’s consensus mechanism.

While institutional custodians’ involvement could reduce concentration on the Lido decentralized staking protocol, it could introduce new concentration risks if a single entity is chosen to stake a significant portion of the included Ether.

“An increase in ether staking ETFs could affect the mix of validators participating in the Ethereum network’s consensus mechanism,” said Managing Director Andrew O’Neill.

“The participation of institutional custodians could reduce the current concentration on the Lido decentralized staking protocol. However, it may also introduce new concentration risk, particularly if a single entity is chosen to stake the bulk of ether included in these ETFs.”

The post Coinbase Makes Case for Approval of Ether ETFs in Formal Letter to SEC appeared first on Cryptonews.

The Bloomberg report, the leading altcoin has recorded positive traction year-to-date (YTD) with speculations on the next wave of exchange-traded funds.

The Ether token is outshining Bitcoin this year partly on speculation that the next wave of spot US crypto exchange-traded funds will focus on the second-largest digital asset https://t.co/XM12Tps2iz

— Bloomberg (@business) February 21, 2024

Ethereum soared 28% this year while Bitcoin has climbed 21%, unlike previous time frames, when BTC was leading in this metric. Last year, Bitcoin recorded a 158% growth based on renewed institutional inflow, while Ethereum trailed behind with an 80% increase.

At press time, Ethereum trades at $2,918, a 6% rise in the last seven days and an 18% growth compared to the previous month. The asset also breached the $3,000 mark on Feb 20 before a slight market correction in early trading hours.

The rise of the asset above $3,000 marks the highest point since April 2022, before the fall of the Terra Network and the subsequent implosion of FTX.

Industry events and broader macroeconomic factors caused the bear market with falling asset prices. In 2022, the values of Bitcoin and Ethereum slipped by more than 55%.

ETF for Ethereum Just like Bitcoin

This year, several analysts have predicted a change in direction for Ethereum with speculations of a spot Ethereum ETF approval by the United States Securities and Exchange Commission (SEC).

This comes after the success of Bitcoin before and after the Bitcoin ETF approval. 2023 began with mild inflows into the leading cryptocurrency and skyrocketed in the second quarter.

Notably, as BlackRock and other big firms applied for a Bitcoin ETF license, there is a higher institutional drive surrounding the cryptocurrency. Q4 2023 saw BTC attract millions into investment products as it rose above $42,000 in December.

BTitcoin’s rally led to firms predicting high inflows into the asset. This year, the approval has seen $5.2 billion in net inflows and a price above $51,500.

Investors See New Investment Window

Institutional investors have now turned their attention to an Ethereum ETF, with several firms filing applications with the SEC. Per Bloomberg:

“While some crypto fans view the funds as a precedent paving the way for Ether ETFs, others are skeptical that officials will accede to them and anticipate further legal drama.” 

Traders see Ethereum’s high potential based on its staking feature, which allows investors to earn yield. The growing smart contracts ecosystem on the chain also boosts positive sentiment towards Ethereum. Stefan von Haenisch, the head of trading at OSL SG Pte Singapore, projected Ether to outperform Bitcoin in the coming months.

“I expect Ether to continue to outperform Bitcoin in the coming months, at least until April-May when the potential ETF approval looms closer.” 

However, he noted that the SEC may not approve an Ethereum ETF because of its tough stance. Wealth management company Bernstein reported similar sentiments on institutional flows to Ethereum based on ETF applications.

The post Bloomberg: Ethereum Outpaces Bitcoin as Institutions Shift Focus to the Largest Altcoin appeared first on Cryptonews.

Ethereum price predictions are becoming more bullish as the Ether price eyes a retest of the key psychologically important $3,000 level for the first time since April 2022.

The Ethereum price has been gaining momentum in recent days, despite Bitcoin’s rally stalling around $52,000.

Indeed, the Ether price is up nearly 13% in the past 7 days, according to CoinMarketCap.

That compares to a 4.4% price gain for Bitcoin over the same time period.

Bullish narratives relating to Ether have been visibly gaining traction around the market in recent days, with more and more analysts coming out to express a bullish view.

Bernstein argued this Monday that various Ether-based spot ETFs are likely to gain approval this year.

That, combined with Ether’s deflationary tokenomics, staking yield dynamics and environmentally friendly design could make ETH the next “institutional darling”.

In a note to Cryptonews, Keyrock CEO Kevin de Patoul argued that spot Ethereum ETF approvals later this year are far from a done deal.

“The SEC hasn’t so far provided clear guidance on Ether’s status as a security, which could complicate the approval process”.

That being said Patoul strongly believes that the SEC should approve spot Ethereum ETFs.

“The utility and growth potential of the Ethereum network make a strong case for institutional adoption through a regulated investment vehicle,” he argued.

“Institutions and investors alike deserve easy access to (spot Ether) in the form of an ETF”.

Ethereum Price Prediction – How High Can ETH Pump?

The market certainly doesn’t seem to be paying too much attention to the fact that spot Ether ETF approvals might not come as soon as expected.

Bullish fundamental narratives appear to be combining with strong technical momentum after ETH’s strong bounce from $2,700 support.

Looking at the ETH chart on a longer time frame, the picture has been bullish ever since early December.

That’s when the Ether price broke above long-term resistance at $2,150, marking a breakout from a long-term ascending triangle structure.

The Ether price proceeded to find support repeatedly at $2,150 in late December and early January.

That acted as strong confirmation that a near-term price surge towards the next major resistance level at $3,600 is likely.

Assuming Ether (ETH) can clear $3,000, a retest of $3,600 seems inevitable.

The post Ethereum Price Prediction as Ether Bulls Eye $3K Level – How High Can the ETH Price Pump? appeared first on Cryptonews.

Blockchain tracking firm Lookonchain reported the initial sighting of the Ethereum whale movements. According to their analysis, funds originated from major cryptocurrency exchange Binance and several decentralized exchanges (DEXes).

Is Justin Sun the Ethereum Whale?

Lookonchain has proposed a connection between the Ethereum whale activity and Justin Sun, who founded Tron and serves as an advisor to the crypto exchange HTX. The firm highlighted large withdrawals from HTX coinciding with the whale’s transactions, noting Sun’s capability to facilitate such sizable purchases.

1/ In the past 32 hours, someone bought a total of 54,721 $ETH ($154.4M) from #Binance and #DEX.

Who is this guy? Could be #JustinSun?

Let’s dig deeper. pic.twitter.com/6yh4GRZnws

— Lookonchain (@lookonchain) February 19, 2024

“30 minutes ago, a wallet ‘TWGHNc’ suspected to be JustinSun deposited 50M USDT into Binance,” Lookonchain reported. “This wallet also withdrew 500M USDT from HTX yesterday.”

The firm further noted a sequence of fund transfers between HTX and Binance matching the timeline of the ETH purchases. The potential connection to Sun is currently just an educated guess based on this transactional data.

Ethereum Price on the Rise: Could It Reach $3,500?

Following the Ethereum whale’s substantial purchase, ETH price has stayed on an upward trend. Ethereum has been steadily climbing this past week, even crossing the $2,900 threshold on Monday.

Market analysts attribute this rally to factors like institutional investment in Bitcoin ETFs, which often positively correlates with Ethereum price action. Additionally, a spike in trading volume suggests renewed investor interest in ETH.

This rising trading volume could potentially drive Ethereum prices even higher throughout the coming week. Typically, increased volume fuels investor confidence and improves market liquidity, allowing traders to easily enter and exit positions with minimal price impact. Another compelling indicator is the major decrease in ETH held on exchanges. Investors appear to be transferring their ETH into long-term storage or staking contracts, effectively reducing the circulating supply and increasing its potential value.

Considering these key trends, bullish market sentiment prevails, leaving many wondering if Ethereum’s upward trajectory could propel it towards the $3,500 target in the foreseeable future.

Large-scale buying by known market movers can sometimes prefigure more major shifts in crypto price and sentiment. Whether this latest whale activity triggers broader investor interest or an ETH price jump is unclear. The transactions have brought heightened attention to the cryptocurrency market as many investors anticipate Ethereum’s price trajectory and its whale’s next move.

The post Ethereum Whale Moves 54,721 ETH Worth $161 Million in 32 Hours—Is a Major Market Shift Underway? appeared first on Cryptonews.

In a Feb 19 research paper, Bernstein discussed Ethereum’s prospects in the coming months in terms of staking rewards, possible institutional inflows, and an ETF approval.

According to the report, the leading altcoin might become the only other cryptocurrency to have a spot ETF after Bitcoin. This comes after several firms have made moves toward securing approval for a spot Ethereum ETF.

Analysts at the firm suggest that there is a 50% chance for an ETH ETF approval by May while adding that this is an almost certain probability by the end of the year.

Like Bitcoin, institutional investors are keen on Ethereum for many reasons, the main among which is its vast decentralized finance (DeFi) ecosystem.

Ethereum’s network remains the leading smart contract network, attracting a diverse range of decentralized applications (dApps).

“Ethereum with its staking yield dynamics, environmentally friendly design, and institutional utility to build new financial markets, is well positioned for mainstream institutional adoption.”

Moves Toward an Ethereum ETF

This year, the digital asset market has seen developments pointing to companies’ increased interest in a spot Ethereum ETF.

Following the approval of Bitcoin spot ETFs by the Securities and Exchange Commission (SEC), analysts believe ETH is next.

Bloomberg analyst James Seyffart suggested a decision will be made on May 23. Big-name firms such as BlackRock, VanEck, Hashdex, and Grayscale are seeking approval from the SEC.

Franklin Templeton just joined the spot #Ethereum ETF race. pic.twitter.com/zJvk9seXe3

— James Seyffart (@JSeyff) February 12, 2024

Recently, Franklin Templeton joined the race for an ETH ETF approval as more investors look towards the second-ranked asset. Although other assets have recorded huge inflows, approval is likely to end with the top two assets only.

In a recent interview, Cathie Wood, the CEO of ARK Invest expressed a similar sentiment, stating that the SEC is unlikely to approve more ETFs outside Bitcoin and Ethereum.

Aside from being the second largest cryptocurrency, Ethereum stands out with its proof-of-stake consensus mechanism, allowing transaction validators to earnin yield by staking ETH.

Investors Eye Ethereum Growth

In recent months, Bitcoin’s growth has outpaced Ethereum, but many commentators still view ETH’s growth prospects with optimism.

A significant reason for Bitcoin’s massive inflow over ETH is linked to ETF figures, so a similar move from the altcoin giant can reignite a rebound.

Last year, institutional firms projected Ethereum as the crypto asset with the highest growth potential. The survey was conducted when Ethereum saw significant outflows on the institutional front.

Similarly, Coinbase market research shows momentum building for Ethereum as more firms look towards a spot ETF. At press time, ETH exchanges hands at $2,912, a 7.2% growth in the last seven days.

The post Ethereum Likely The Only Spot Crypto ETF To Be Approved After Bitcoin: Bernstein appeared first on Cryptonews.

In a recent post, the Ethereum mastermind said this technological upgrade would specifically benefit Ethereum solo stakers and network nodes.

Verkle Trees are expected to enable “stateless validator clients,” allowing staking nodes to operate with minimal hard disk space and achieve near-instant synchronization.

Buterin has previously outlined a comprehensive roadmap for Ethereum’s development, describing it as the “endgame” for the smart contract blockchain.

This roadmap follows the successful activation of the Beacon Chain, which transitioned Ethereum to a proof-of-stake consensus mechanism in September 2022.

What Are Vitalik Buterin’s Verkle Trees?

Verkle Trees are a crucial component of this roadmap, falling under the Verge phase, the third stage of Ethereum’s development plan.

This phase focuses on introducing Verkle Trees to optimize data storage and reduce node size.

Buterin published the technical details of Verkle Trees in the Ethereum Improvement Proposal documentation in 2022.

Verkle Trees function similarly to Merkle Trees, which aggregate all transactions in a block to provide proof of the data’s authenticity.

However, Verkle Trees offer a significant advantage by providing much more efficient proof sizes.

They employ tree-like structures and utilize vector commitments, a specific type of hash, which are passed to sub-nodes.

These vector commitments offer long-term benefits to the Ethereum network.

The primary benefit of Verkle Trees is their ability to assist Ethereum in achieving statelessness.

This concept envisions nodes verifying blocks without the need to store Ethereum’s “state.”

With Verkle Trees, smaller proof sizes can be included within each block of the Ethereum blockchain, enabling nodes to verify blocks using the data contained within those blocks themselves.

I'm really looking forward to Verkle trees. They will enable stateless validator clients, which can allow staking nodes to run with near-zero hard disk space and sync nearly instantly – far better solo staking UX. Also good for user-facing light clients.https://t.co/Bg2KXH07Id

— vitalik.eth (@VitalikButerin) February 18, 2024

Implementing Verkle Trees will result in various new functionalities.

First, it will lower the hardware requirements for running Ethereum nodes, thereby enhancing network decentralization.

Additionally, new nodes can join the network almost instantly and synchronize quickly, contributing to a more efficient and accessible Ethereum ecosystem.

Ethereum Staking Sees Renewed Interest

The Ethereum network is experiencing a surge in the number of validators seeking to stake their ETH.

As reported, the validator entry queue currently stands at 7,045, representing over 225,000 Ether (equivalent to $562 million), its highest level since October 2023.

The backlog is estimated to be cleared in slightly over 48 hours. Due to Ethereum’s limitations on the number of new validators that can join the network per epoch, a backlog occurs as more entities seek to participate.

An Ethereum epoch lasts approximately 6.4 minutes.

Validators are entities that stake a minimum of 32 Ether in the network, enabling them to participate in running Ethereum’s proof-of-stake consensus blockchain.

In return for staking their Ether, validators receive a steady rate of return similar to interest income from fixed-income instruments like bonds.

The post Vitalik Buterin: Verkle Trees Implementation to Benefit Ethereum Stakers and Network Nodes appeared first on Cryptonews.

When questioned about the possibility of a decision and the timeline for approval, Gensler said that the process would follow the same approach as Bitcoin (BTC) ETFs. Still, he refrained from providing any specific details or a potential timeframe.

On February 6, the SEC postponed its decision on the Invesco Galaxy Ethereum ETF, which followed a delay in December concerning Invesco’s ETF application.

The SEC has also deferred decisions on other Ethereum ETF applications, including those from prominent firms like Grayscale, Fidelity, and BlackRock, the largest asset management company globally.

Notably, other firms such as VanEck and Hashdex are also seeking Ethereum ETF approvals, with Franklin Templeton becoming the latest asset manager to file a spot Ethereum ETF application. 

Gensler Maintains Stance on Bitcoin Despite Approving Spot ETFs

During the interview, Gensler also expressed caution when discussing the approval of Bitcoin ETFs by his agency.

He reiterated that the approval did not reflect a change in the SEC’s view on the risks associated with Bitcoin but was rather a response to a court decision in the Grayscale v. SEC case.

The court ruling stated that the SEC had “failed to reasonably explain” why it had previously approved Bitcoin futures products but not spot ETFs. Gensler added:

“While we had denied two dozen of these, a court in Washington said we did not get that right, and it got remanded to us. The most sustainable thing to do is to approve these given the court ruling.”

However, he voiced concerns about Bitcoin’s association with illicit activities and the lack of oversight faced by many crypto exchanges.

During the interview, Gensler highlighted the prevalence of fraud and manipulation within the crypto industry and the numerous bankruptcies that have occurred.

He contrasted this with government-issued currencies, acknowledging that they can also be used illegally but play a significant role in supporting established economies.

Absolutely bizarre Gary Gensler doesn't understand #Bitcoin $BTC yet. 'Not decentralised'? Feels like @JoeSquawk is even holding back here.

Also at 3.36 note GG sidesteps the #ETH spot ETF question. Bullish.https://t.co/K0p4x6ypR7

— Moondrops Crypto Screener (@moondropsapp) February 15, 2024

Gensler maintained that the SEC remains impartial and “merit neutral” as long as entities comply with the law.

Despite Ethereum ETF Uncertainty, ETH Staking Sees Renewed Interest

The Ethereum network is experiencing a surge in the number of validators seeking to stake their ETH.

As reported, the validator entry queue currently stands at 7,045, representing over 225,000 Ether (equivalent to $562 million), its highest level since October 2023.

It is estimated that the backlog will be cleared in slightly over 48 hours.

Due to Ethereum’s limitations on the number of new validators that can join the network per epoch, a backlog occurs as more entities seek to participate.

An Ethereum epoch lasts approximately 6.4 minutes.

Validators are entities that stake a minimum of 32 Ether in the network, enabling them to participate in running Ethereum’s proof-of-stake consensus blockchain.

In return for staking their Ether, validators receive a steady rate of return similar to interest income from fixed-income instruments like bonds.

The post Gensler Hesitates on Ethereum ETFs, Cites Court Loss as Reason for Bitcoin ETF Approval appeared first on Cryptonews.

According to data from DefiLlama, there is now $1.93 billion worth of wrapped ether tokens locked on the protocol, as well as $2.73 billion worth of staked ether. EigenLayer’s total value locked (TVL) currently stands at $6.85 billion at the time of writing.

Elevating EigenLayer to a top-tier DeFi platform, this development reveals the potent allure of Ethereum restaking for investors seeking enhanced yields.

EigenLayer’s Rapid Expansion in Ethereum Restaking

The influx of inflows has seen the liquid restaking platform rise to the fifth largest protocol in DeFi.

Protocol by Rankings:

1. Lido $26.781B
2. Maker $8.306B
3. AAVE $8.116B
4. JustLend $6.971B
5. EigenLayer $6.859B
6. Uniswap $4.678B
7. Rocket Pool $3.39B
8. Spark $3.021B
9. https://t.co/tw1Zm4bWmL $2.948B
10. Instadapp $2.526B

– DefiLlama

— Jungle Tales (@jungletales69) February 14, 2024

The increase in inflows occurred following EigenLayer’s removal of its 200k ETH individual caps on liquid staking tokens on February 5, a move intended to “encourage organic demand,” as detailed in a blog post on January 24. While the opportunity for liquid restaking closed on February 10, the subsequent $600 million surge in TVL can be linked to the rising prices of assets.

The boost in EigenLayer’s TVL is reflective of a broader trend within the DeFi sector, where the total capital locked in DeFi protocols has reached $71.2 billion. This marks the highest point since June 2022 and is nearly double the total recorded during October’s low of $36.8 billion.

Restaking has played a big role in the upward trajectory of DeFi protocols. Capital on the liquid restaking platform ether.fi has witnessed a 406% increase, reaching $1.19 billion in the past 30 days, while Puffer Finance has seen a 79% surge in the last week alone.

The TVL across various liquid restaking protocols, including EigenLayer, now stands at $10 billion, a major rise from December’s figure of $350 million.

The Impact of ETH Restaking on Investor Yields

Ethereum restaking allows investors to stake their ETH on both the Ethereum blockchain and additional platforms, broadening the security and utility of their investments. While staking can be seen as establishing the groundwork for Ethereum’s security, restaking expands the protocol’s security capabilities to various applications on the network.

Restaking also involves earning additional yields on ETH that is already “staked” on the main Ethereum blockchain. Investors staking ether on Lido can currently achieve an annual yield of 3.7%, while EigenLayer provides a platform for these investors to “restake” their ether for more rewards.

The post Ethereum Restaking Draws $4.4 Billion to EigenLayer Amid Surging Interest appeared first on Cryptonews.

Within just one week, the token’s fully diluted valuation soared to over $320 million, making it one of the most talked-about projects in the crypto space.

According to data as of February 13, the total trading volume of Pandora reached an impressive 73,024 ETH, equivalent to approximately $190 million, Nansen said in an analysis shared with Cryptonews.com.

Notably, this volume includes transactions on both decentralized exchanges (DEXs) for ERC20 tokens and NFT marketplaces for ERC721 tokens.

Pandora’s Token 32% Below ATH

As of the latest update, Pandora’s price stands at around $21.9k, marking a 32% decline since its all-time high.

The token has garnered attention from 1,420 unique owner wallets, each holding at least one full token.

Among the 5,681 NFTs or full tokens in circulation, an impressive 50% are held by “diamond hands” wallets, indicating a strong investor belief in the project’s potential.

This retention rate surpasses established blue-chip NFT collections such as Pudgy Penguins and Bored Ape Yacht Club, according to the Nansen report.

Just recently, Nansen Product Marketing Manager Journey Li revealed in a post on X that a wallet funded by a wallet funded by Amber Group bought 109 Pandora yesterday, which amounted to about $1.96M at the time.

interesting, a wallet funded by a wallet funded by Amber Group bought 109 Pandora over the last hour

at the current price, worth about $1.96M pic.twitter.com/nSsK9LPPtd

— Journey (@journeywr) February 12, 2024

The report said that analyzing the volume and transactions of ERC404 tokens presents certain challenges due to the hybrid nature of the standard.

However, focusing on NFT-only transactions over the past 30 days reveals that the volume of major NFT marketplaces like OpenSea and Blur remained relatively unaffected by the introduction of ERC404.

This suggests that the majority of ERC404 transactions are occurring on DEXs.

Minting of ERC404 Tokens Surge

Additionally, the minting of ERC404 tokens has witnessed a significant surge.

Mints occur when whole tokens or multiple whole tokens are purchased from a DEX, and the past week alone saw mint volume surpassing $344 million.

It is important to note that if a whole token is subsequently sold as an NFT on a marketplace instead of a DEX, it is not burned or re-minted.

The successful launch of Pandora has also paved the way for other projects utilizing the ERC404 token standard, including technical advancements like ERC404+ and DN404.

This trend indicates a favorable reception within the industry, as market participants embrace the concept of native liquidity for hybrid token standards.

Several projects launched after Pandora on February 2 have already shown promising trading activity, with three projects surpassing 10,000 ETH in volume and an additional 12 projects exceeding 1,000 ETH in volume since their inception.

As reported, gas fees on the Ethereum network have also soared to levels not seen since March 2023 driven by the growing interest in ERC-404.

On February 9, Ethereum gas prices soared to an average peak of 70 gwei, equivalent to $60 for a standard transaction.

The post Pandora’s ERC-404 Token Surges with $190M Trading Volume Within a Week of Launch: Nansen appeared first on Cryptonews.