Cryptocurrencies To Watch

Tag: Ethereum News

  • The Main Ether (ETH) Support Level to Watch as Price Eyes $4,000

    The Main Ether (ETH) Support Level to Watch as Price Eyes $4,000

    Ethereum (ETH) is poised for a significant rally, with its price targeting the $4,000 milestone. However, market participants are zeroing in on a critical support level at $3,000, which could propel the cryptocurrency’s upward momentum to the $4,000 mark and beyond.

    According to Ali Charts, a popular X personality and cryptocurrency analyst, Ethereum’s crucial support level lies at $3,000, a threshold bolstered by substantial investor interest, as evidenced by the significant accumulation of ETH at this price point.

    With about 2.82 million addresses accumulating over $6.14 million worth of ETH in the $3,000 price range, this robust demand zone serves as a ‘safety net’ and pivotal foundation for Ethereum’s future price movements, supported by the several buying activities of numerous market participants.

    Institutional Interest Ignites Ether’s Ascent

    As institutional interest in Ethereum continues to surge, a breakout above the $4,000 threshold appears increasingly likely.

    In a recent report, the State of Michigan Retirement System revealed in a 13F filing to the United States Securities and Exchange Commission (SEC) that it invested more than $11 million worth of crypto assets in Grayscale’s Ethereum exchange-traded fund.

    The Michigan pension agency bought 460,000 shares of the Grayscale Ethereum Trust (ETHE) and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), both worth about $10 million and $1.1 million at the time of the report.

    Ahead of Ethereum’s ETF debut, Bybit’s institutional head, Eugene Cheung, observed increased optimism towards Ether among institutional investors compared to retail investors.

    Data collected revealed a pronounced uptick in institutional investor appetite for Ether, as they substantially boosted their holdings from 6.54% to 14.29%, representing a 118% increase. Meanwhile, retail investors moderately expanded their allocation from 7.4% to 9.52%, signaling a broadly optimistic sentiment towards ETH price.

    Ahead of the SEC’s approval, Matt Hougan, Bitwise Asset Management’s CIO, predicted that the launch of Ethereum ETFs would catapult ether prices above $5,000. With a solid support base at $3,000, Ethereum is poised to extend its upward momentum to $4,000 and beyond.

  • Ethereum Foundation Reveals $788 Million in Treasury Holdings

    Ethereum Foundation Reveals $788 Million in Treasury Holdings

    The Ethereum Foundation (EF), the non-profit organization that promotes the growth and development of the Ethereum blockchain,  has revealed its treasury holdings, totaling $970.2 million in ether (ETH) and other investments.

    According to a recent report, the foundation holds $788.7 million in crypto assets, with approximately 99.45% held in ETH, representing 0.26% of the total ETH supply.

    The non-profit also revealed holding approximately $181.5 million in non-crypto assets and investments.

    “We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective,” the foundation wrote.  

    The EF stated that its treasury intends to support essential public goods for the Ethereum ecosystem. It also emphasized its commitment to a cautious treasury management approach, aiming to maintain ample resources even during a multi-year market downturn.  

    “This requires periodically selling ETH to ensure sufficient savings for future years, and programmatically increasing our fiat savings in bull markets to fund spending in bear markets,” the EF added.

    The non-profit plays a significant role in developing and maintaining the Ethereum network, funding key projects, research initiatives, and developer grants.  

    EF Support Ethereum Projects 

    Over the years, the EF has allocated millions of dollars towards several projects. The non-profit disclosed that nearly $500 million was deployed to support ecosystem projects between 2022 and 2023. 

    According to a report, in 2023, the EF’s largest spending area was on “new institutions,” amounting to $47.4 million, a notable increase from $28.6 million in 2022, which includes grants to new institutions supporting the Ethereum ecosystem.   

    Additionally, the EF invested $34.7 million in Layer 1 research and development, an increase from $32.1 million the previous year. 

    The foundation’s report also showed that entities within the Ethereum ecosystem collectively spent more than $497 million on project funding, with the EF alone contributing approximately $240.3 million, or around 48.3% of the total. 

    The rest of the funding was provided by organizations such as MakerDAO (now renamed Sky), Optimism, Gitcoin, Decentraland, Aragon, Uniswap, Starknet, MetaMask DAO, and Protocol Guild, highlighting a collaborative effort within the Ethereum community. 

    Aya Miyaguchi, executive director of the EF, noted that the foundation is committed more than ever to planting seeds that may only mature years down the line, ensuring Ethereum’s resilience and collaborative growth.

  • Ethereum Unveils Mekong Testnet to Preview Pectra Upgrade Features

    Ethereum Unveils Mekong Testnet to Preview Pectra Upgrade Features

    The Ethereum Foundation plans to launch the first short-lived Pectra testnet, Mekong, in Q1 of 2025. The testnet will allow developers to experiment with future upgrades before they reach the Ethereum mainnet.

    The foundation noted that the Mekong testnet would enable developers to explore user experience (UX) updates and get acquainted with the upcoming changes in the Prague-Electra, or “Pectra,” fork on Ethereum. 

    “Mekong is meant to be a playground for wallet developers to experiment with UX changes and for stakers to gain confidence in the upcoming changes. The testnet will be short-lived and will feature complete with all the intended EIPs for Pectra,” the foundation wrote. 

    The non-profit organization also noted that developers would experience minor spec changes or smaller Ethereum Improvement Proposals (EIPs), but the features included will eventually make it into existing public testnets and the Ethereum mainnet.  

    Tim Beiko, protocol support at the Ethereum Foundation, also described the short-lived testnet as a “pre-devcon treat” in reference to the upcoming Devcon conference in Bangkok. The testnet’s name, Mekong, honors the Mekong River, which flows through several Southeast Asian nations, including Thailand, Cambodia, and Vietnam.

    The Ethereum Foundation stated that the Mekong testnet incorporates all EIPs slated for the Pectra fork. These updates cover a range of modifications, including user experience, staking processes, deposit functions, and exit protocols.  

    Additionally, the testnet integrates other proposed EIPs and technical specifications for further testing. 

    The non-profit organization encouraged developers to test the user experience updates and share feedback with the organization.

    While the Mekong testnet provides developers with a platform to examine the upcoming enhancements, the Ethereum Foundation noted that it will not affect the mainnet or other Ethereum test environments, such as Holesky and Sepolia. 

    “Mekong is a new testnet and does not affect other Ethereum networks. However, testing on Mekong will inform the deployment of the Pectra upgrade on other Ethereum networks,” the foundation added.

    As for stakers, the Ethereum Foundation mentioned that major changes to the staking workflow are coming to Pectra. 

    The foundation further noted that the Mekong testnet will be the first location to try them out.

  • Michigan State Pension Fund Discloses Over $11M in ETH ETF

    Michigan State Pension Fund Discloses Over $11M in ETH ETF

    The State of Michigan Retirement System has invested over $11 million worth of crypto assets in Grayscale’s Ethereum exchange-traded fund, according to a 13F filing to the United States Securities and Exchange Commission (SEC). 

    The details of the 13F filing disclosed that the Michigan pension agency holds a considerable investment portfolio in Ethereum ETFs, consisting of 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million, and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), currently valued at $1.1 million. 

    This substantial holding brings the agency’s total investment in ETH ETFs to over $11 million.

    Michigan Pension Fund Makes History

    The Michigan pension fund’s investment in ETH ETFs has achieved remarkable milestones, setting new precedents in the industry. 

    Notably, it has become the pioneering public pension fund to disclose an ETH ETF holding, marking a significant breakthrough in institutional investment. Furthermore, according to Matthew Sigel, Head of Digital Assets at VanEck, the fund’s substantial stake in Grayscale’s spot Ethereum ETFs has catapulted it to the top-five holder position.

    The Michigan State Pension Fund’s recent ETH ETF investment follows its initial crypto allocation in July, wherein it spent about $6.6 million to buy 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB).

    Institutional Capital Flows into Crypto Markets 

    Recently, traditional institutions have shown an increased appetite for cryptocurrency investments.

    Jersey City announced plans in July to allocate a portion of its pension funds to Bitcoin ETFs, while the Chief Financial Officer of Florida, Jimmy Patronis, also advocated for the American state to add Bitcoin (BTC) to its investment portfolio.

    A recent report highlights significant growth in traditional hedge funds holding crypto assets. The percentage of funds invested in cryptocurrencies rose from 29% in 2023 and 37% in 2022 to 47% in 2024. 

    Furthermore, the report revealed that existing cryptocurrency investors are committed to their allocations, with 67% maintaining current levels and 33% planning to increase their investments by year-end 2024. 

    Additionally, the adoption of digital asset derivatives rose, jumping from 38% in 2023 to 58% in 2024.

  • Ethereum’s ‘Verge’ Upgrade to Enable Node Operation on Phones and Smartwatches

    Ethereum’s ‘Verge’ Upgrade to Enable Node Operation on Phones and Smartwatches

    Ethereum co-founder Vitalik Buterin recently explained that the network’s upcoming upgrade, known as “The Verge,” will enhance security and accessibility, enabling its nodes to operate on devices like smartphones and smartwatches.  

    The upgrade aims to enhance the feasibility and accessibility of solo staking by allowing node functionality on smaller devices.

    The Verge also aims to lower hardware requirements through stateless verification, enabling nodes to validate blockchain blocks without the need to store large amounts of data.

    The Verge Introduces Stateless Verification

    According to Buterin’s post, the introduction of stateless verification will make verifying the blockchain so lightweight that every mobile wallet, browser extension, and even smartwatch will handle it automatically.

    The move to stateless verification will eliminate the need for Ethereum nodes to store the entire blockchain, lowering the technical hurdles for users, including solo stakers.  

    Buterin noted that The Verge was originally centered on introducing Verkle trees, a cryptographic method aimed at minimizing proof sizes and facilitating stateless validation.

    He addressed worries regarding the vulnerability of Verkle trees to quantum computing, saying:

    “Verkle trees are vulnerable to quantum computers, and so if we replace the current KECCAK Merkle Patricia tree with Verkle trees, we will later have to replace the trees again.” 

    While the upgrade initially focused on implementing Verkle trees, developers are exploring the use of binary hash trees built on Scalable Transparent Arguments of Knowledge (STARKs), which offer better long-term prospects for security and scalability in the face of quantum computing risks.

    Modifying Ethereum’s Gas Fee

    The Verge also outlines proposed modifications to the network’s gas fee structure through Ethereum Improvement Proposal (EIP)-4762, which would pave the way for stateless verification.

    The proposed change would recalibrate gas fees for resource-intensive cryptographic operations to maintain both network scalability and security, introducing multidimensional gas, according to Buterin.

    This innovative approach distinguishes gas fees for call data, computation, and state accesses to enhance the management of Ethereum’s resources, aligning with the upgrade’s emphasis on reducing hardware requirements.

  • Ethereum, L2s to Exceed 100K Transactions Per Second, Says Vitalik Buterin

    Ethereum, L2s to Exceed 100K Transactions Per Second, Says Vitalik Buterin

    Ethereum’s co-founder Vitalik Buterin has recently highlighted his vision for the next phase of the blockchain’s roadmap, known as the “Surge.”

    In a recent blog post, Buterin outlined his primary objectives for the Surge, focusing on surpassing 100,000 transactions per second (TPS) on Ethereum’s mainnet and layer 2 solutions while enhancing interoperability between L2 networks.

    Buterin praised the success of Ethereum’s rollup-centric roadmap, strengthened by the Dencun upgrade in March, though he acknowledged that this strategy had brought some unique challenges along with it.

    Rollup-Centric Roadmap Proposes Division of Roles

    He noted that the rollup-centric roadmap had faced criticism, with some detractors arguing that extractive L2s are diverting users and revenue away from Ethereum’s mainnet, introducing new security risks, and making Ether, the network’s native token, inflationary.

    The rollup-centric roadmap also proposes a simple division of roles, where Ethereum’s Layer 1 serves as a secure and decentralized foundation, and the L2 solutions handle scaling for the ecosystem.

    According to Buterin, for Ethereum to advance, it must innovate in areas like data availability sampling, enhancing data compression, ensuring L2 networks are fully trustless, and streamlining the user experience across different blockchains.

    He also mentioned that progress on making Ethereum rollups fully trustless, similar to the Ethereum mainnet, had been slow due to concerns about potential bugs in the code.

    Buterin further emphasized that Ethereum requires trustless rollups, which enable certain L2s to inherit Ethereum’s core attributes and support more sustainable scaling in the long term.

    Increasing Ethereum’s Gas Limit

    While focusing on bugs in the code, Ethereum’s co-founder highlighted the importance of scaling Ethereum’s base layer to meet growing demand.

    “If L2s become very scalable and successful but L1 remains capable of processing only a very low volume of transactions, there are many risks to Ethereum that might arise.”

    Buterin noted that the most direct solution would be to raise Ethereum’s gas limit; however, he pointed out that this could lead to centralization risks because of the higher costs for stakers.

    Enhancing the User Experience on Ethereum

    Buterin stated the significance of enhancing user experience among Ethereum’s upcoming layer-2 networks, a concern that numerous Ethereum users have voiced in recent months.

    “If we are serious about the idea that L2s are part of Ethereum, we need to make using the L2 ecosystem feel like using a unified Ethereum ecosystem,” he said.

    In addition, Buterin noted that enabling L2 networks to communicate more seamlessly in the back end would ease users’ technical burden.

  • Here’s How Vitalik Buterin Intends to Improve Ethereum’s PoS Mechanism

    Here’s How Vitalik Buterin Intends to Improve Ethereum’s PoS Mechanism

    After two years of transit from Proof of Work (PoW) to Proof of Stake (PoS), the Ethereum blockchain co-founder Vitalik Buterin published how he intends to enhance the blockchain’s mechanism to meet users’ advancing needs. 

    Why the Need Arises

    Buterin acknowledged that Ethereum’s PoS consensus algorithm currently takes approximately 15 minutes to finalize a block. This delay can have negative consequences, including reduced user experience due to waiting for transactions to be confirmed.

    Ethereum’s current staking requirement of 32 ETH creates significant barriers to entry, limiting participation from smaller stakeholders due to high capital requirements. This restriction can lead to a less diverse validator set, potentially compromising network security and decentralization.

    Buterin’s Goal

    The blockchain developer’s goal is to achieve single-slot finality, finalizing blocks in 12 seconds or less. Achieving this objective would bring numerous benefits, including improved user experience through faster transaction confirmations and simplified infrastructure.

    The goal of staking democratization is to reduce the minimum staking requirement to 1 ETH. Achieving this objective would increase participation from individual stakeholders, improve network decentralization, and enhance security through a more diverse validator set. This would promote a healthier and more resilient ecosystem.

    The Challenge

    Like several goals, Buterin’s two major objectives for the Ethereum blockchain face challenges. Achieving single-slot finality poses technical challenges, particularly in scalability and security. Processing signatures from millions of validators in a short time frame is a significant hurdle. 

    Staking democratization also poses its technical challenges. Scalability issues arise from handling increased validator numbers while maintaining network security with smaller stake sizes.

    Buterin’s Proposed Solutions

    To overcome the single-slot finality challenge, Buterin’s proposed solutions include improved signature aggregation protocols, such as utilizing ZK-SNARKs, and Orbit committees, which involve randomly selected committees for finalizing blocks. These solutions aim to maintain economic finality while reducing finalization time.

    To address the staking democratization challenges, Buterin’s proposed solutions include improved validator management systems and dynamic validator selection algorithms. He believes that by overcoming these hurdles, Ethereum can enhance its scalability, security, and decentralization, ultimately benefiting its users.

    Meanwhile, Buterin keeps working to improve Ethereum’s performance. The successful implementation of the Ethereum Purge and Dencun upgrade, finalized seven months ago, demonstrates the network’s ongoing commitment to growth and optimization.

  • Australia’s First Spot Ether ETF to begin Trading Today

    Australia’s First Spot Ether ETF to begin Trading Today

    Australian Investment management firm Monochrome has launched the first Australian spot Ether exchange-traded fund (ETF) with the ticker IETH. It will begin trading on Monday in the Cboe global markets.

    Monochrome has been at the forefront of crypto ETF adoption in the Australian financial market. It launched its first Bitcoin ETF, IBTC, which has taken in about $10.1 million since earlier this year. 

    Monochrome’s Australian Ether ETF

    Monochrome’s IETH will closely track the benchmark price for Ethereum, calculated by the Chicago Mercantile Exchange (CME) and Crypto Facilities (CF), and will be specifically tailored to market conditions and trading hours in the Asian Pacific region.

    Setting up IETH in the same range as its U.S. competitors, Monochrome has reduced its management fee from 0.50% to 0.21% per annum. 

    Following its launch, IETH will be broadly available on the most popular Australian brokerage platforms, offering seamless flexibility for institutional investors. Additionally, it will allow investors to transfer funds into the ETF from self-custodial wallets, centralized crypto exchanges, and cold wallets. 

    Renowned crypto firms like BitGo and Gemini will offer IETH’s custody services, while State Street Australia will act as the ETF’s fund administrator. Combining these firms, Monochrome plans to achieve secure asset storage, professional oversight, and comprehensive management of IETH assets. 

    The financial giant has revealed plans to integrate a dual-access bare trust structure as a feature to enhance tax efficiency. 

    The structure is designed to minimize tax liabilities for IETH investors. It allows long-term crypto investors to transfer or convert their ETH holdings into the corresponding Monochrome ETF while maintaining existing tax positions.

    “A ‘bare trust’ means that your investment in the ETF may be treated as if you directly own the Ethereum,” Monochrome’s CEO, Jeff Yew, commented.

    Australian Crypto ETF Journey 

    Following the approval of Spot Bitcoin ETFs in the U.S. earlier this year, Australia joined the trend, greenlighting a few filings. 

    Notably, Monochrome was the first asset manager in the continent to bag secure approval from its financial watchdog, the Australian Securities & Investments Commission (ASIC). 

    Meanwhile, the ASIC has revealed plans to update the Corporations Act’s Information Sheet 225 to clarify how crypto tokens and products should be treated. The agency has also proposed that crypto firms obtain financial services licenses to continue operating within its region.

  • DeFi User Pays Over $700k in ETH for Transaction Fee

    DeFi User Pays Over $700k in ETH for Transaction Fee

    Blockchain analyst Lookonchain notified Crypto Twitter about a recent transaction involving an Ethereum user who paid 288 ETH ($704,000) as network fees to process a single transaction.

    The transaction was executed on block 20918439 with a high rate of over 13.73 million Gwei per gas limit. Since the gas used was 21,000, it attracted a high network fee for the transfer.

    The fee is higher than the average fee on the network and highlights the challenges associated with Ethereum’s decentralized finance (DeFi) ecosystem.

    What Likely Happened?

    A possible cause for the high fee is congestion in the Ethereum network which results in high gas prices. As the transaction was processed, network congestion may have worsened, and gas prices surged even higher. The user may have unknowingly set a very high gas price, hoping to prioritize their transaction.

    Complex smart contracts are another culprit for high transaction fees. This usually comes from factors like multiple contract interactions, nested contracts, and complex logic. These transactions include trades and non-fungible token (NFT) minting.

    Complex smart contracts are like mathematical equations, the more variables and operations, the harder it is to solve. This requires more computational power, increasing the fee.

    Smart contract bugs can also consume excessive gas, slow down transactions, and increase network fees. These bugs can be simple mistakes, like infinite loops or unnecessary computations, or more complex issues, like security vulnerabilities.

    What can be Done?

    To avoid excessive fees on Ethereum, users can leverage layer-2 Scaling Solutions like Base and Polygon to enable faster and cheaper transactions. These include off-chain transactions, sidechains, optimistic rollups, and zk-rollups. These technologies reduce congestion on the main Ethereum network, lowering fees and increasing efficiency.

    DeFi platforms can improve user experience by simplifying user interfaces to reduce errors. Decentralized apps can integrate estimation tools for providing accurate predictions, Gas-optimization techniques to minimize gas consumption, and dynamic fee adjustment features.

    Since high network fees can deter users from adopting DeFi and threaten viability, particularly for small transactions, developers can adopt solutions to help users enjoy a smoother and more cost-effective experience.

  • This is How an Ethereum Trader Profited $2M With a 100% Win Rate

    This is How an Ethereum Trader Profited $2M With a 100% Win Rate

    An on-chain Ether (ETH) trader has made a $2 million profit from six perfect swing trades over just 15 days. This impressive move has left many in awe, wondering how this trading wizard achieved such incredible success.

    How Did It Happen?

    Lookonchain, a Leading blockchain analytics firm, drew users’s attention to the trader via a tweet on X (formerly Twitter). Blockchain data reveals that the trades began September 2 and the last trade so far occurred on September 17.

    Starting with a sell order, he sold 4,821 ETH ($12.11M) at an average price of $2,512 per coin, then waited patiently probably watching the charts. After 2 days of waiting, the trader upon noticing the dip, accumulated 5,094 ETH at a lower price of $2,378. This leaves him with a gain of 273 ETH worth $626,500.

    Later on the same day, after a 0.9% increase from his last buy, the trader sold his holdings to buy back 5,153 ETH two days later. This fetched him an additional 58 ETH which is worth $132,800. He sold it again at a higher price and bought back 5,263 ETH gaining an additional 111 ETH worth $256,200. 

    The trader continued on this sell-high-buy-low trading strategy three more times, flipping 4,821 ETH into 5,690 ETH. This boosted his Ether holdings with an additional 869 ETH worth $2 million. This trading performance shows the trader’s market acumen, proving that users with a keen understanding of market trends and dynamics can gain from the crypto market.

    The trader expertly navigated the Ethereum market to achieve an 18% increase so far. At press time, the last trade occurred hours ago. There are chances that the trader might continue on his winning streak and accrue more ETH profits.

    Not the First

    Lookonchain had also reported other on-chain trades that accrued profits from the Crypto market. One such trader used 70 Solana (SOL), worth almost $10,000, to buy about 82 million tokens of a new memecoin called BAKED. Within 30 minutes, they sold all their tokens for 21,581 SOL, making over $3 million from their initial investment.

    A few months ago, a Bitcoin investor, often called “smart money,” made a remarkable profit. By carefully timing his BTC purchases and sales, he made over $30 million in profit.