Ethereum
Bitcoin, Ethereum, solana, crypto news not to be missed.
Mon March 25, 2024 ▪ 9 min reading ▪ by Luc Jose A.
From groundbreaking announcements to technological advancements and regulatory turbulence, the crypto ecosystem continues to prove that it is both a land of limitless innovation and a battleground for regulatory and economic struggles. Here is a summary of the most notable news from the last week regarding Bitcoin, Ethereum, Binance, Solana, etc.
Halving after Halving: Bitcoin Aims for $90,000
According to global investment leader Alliance Bernstein, the expected April halving could be the catalyst that propels the price of Bitcoin to new highs. This event, which sees miner rewards halved, has historically led to significant appreciation in the price of Bitcoin due to its effect on its scarcity. Analysts Gautam Chhugani and Mahika Sapra note that although Bitcoin is currently not at the symbolic threshold of $90,000, Market conditions, including enthusiasm around Bitcoin ETFs and reduced selling pressure from miners, are laying the groundwork for an explosive price rally following the halving.
The halving, scheduled for April 20, is an event closely watched by the crypto community for its impact on the Bitcoin economy. It algorithmically and predictably reduces the amount of new bitcoins generated, thereby increasing their scarcity. Bernstein suggests that a combination of factors such as record inflows into crypto funds, particularly ETFs, and favorable market dynamics could lead to significant Bitcoin appreciation. The recent approval of 11 Bitcoin ETFs by the US SEC only reinforces this anticipation.
Solana faces critical congestion: victim of its own success
The Solana blockchain, often praised for its high transaction speeds and low costs, faces a major challenge related to network congestion. This situation is a direct consequence of its growing popularity and mass adoption of its services. Recent reports indicate significant network saturation, leading to notable delays in transaction execution and a compromised user experience. Congestion has been exacerbated by the rise of memecoin activity, which, while reflecting community engagement, has highlighted the limitations of current infrastructure in terms of scalability and stability.
This critical congestion highlights the challenges inherent in managing a high-throughput blockchain like Solana, especially in the face of growing demand and unexpected usage spikes. Transaction confirmation times have increased significantly, with an average ping time of between 20 and 40 seconds and an estimated transaction failure rate of between 50 and 80%. This has sparked criticism from the community and calls for sustainable solutions to improve the network’s capacity and resilience in the face of increased activities.
Giggle Academy: education reinvented by CZ, after Binance
After making his mark in the world of cryptocurrencies thanks to Binance, Changpeng Zhao (CZ) is opening a new chapter with Giggle Academy, an ambitious educational platform. Aiming to democratize access to education, this philanthropic project stands out for its total accessibility and its non-profit model. Giggle Academy aims to break educational barriers by providing a gamified and adaptive learning platform, free for everyone. The initiative highlights CZ’s desire to make a positive contribution to society by providing educational opportunities to those who need them most, particularly young people in regions where access to quality education remains a challenge.
Giggle Academy does not seek to replace traditional education systems but aims to complement and enrich young people’s learning journey. By focusing on basic education and providing quality educational content, CZ hopes to open up better and broader employment prospects for disadvantaged youth.
Controversy over ordinals: Bitcoin between innovation and discord
Bitcoin, often praised for its simplicity and resilience, finds itself at the heart of growing controversy with the advent of Ordinals. These allow the insertion of arbitrary data such as images into Bitcoin transactions and have sparked heated debate within the community. While some see it as a valuable innovation, others criticize a use that diverts the network from its primary mission: to be an efficient and decentralized digital currency. The integration of Ordinals has led to a notable increase in the size of blocks and, by extension, the blockchain, and raises questions about the long-term scalability and efficiency of the network.
The growing use of ordinals and how they are integrated into transactions highlights a fundamental dilemma: how to balance innovation with maintaining the integrity and fundamentals of Bitcoin. The growing discontent against Ordinals reflects broader concerns about the risks of centralization, rising transaction costs and a blockchain cluttered with non-essential data. As the debate continues to rage, the Bitcoin community finds itself at a crossroads, seeking solutions to harmonize the exploration of new possibilities while preserving the very essence that made Bitcoin a technological and financial revolution .
BlackRock enters the crypto scene with a $100 million Ethereum fund
Investment giant BlackRock is making a bold move by launching a groundbreaking crypto fund. By depositing $100 million in USDC on the Ethereum network, BlackRock is sending a powerful message about the future of digital assets.
BlackRock’s initiative represents much more than just investing in crypto; this reflects a recognition of the value and potential of digital assets by the traditional financial sector. The move could encourage other financial giants to explore and invest in cryptocurrencies, thereby increasing the legitimacy and acceptance of cryptocurrencies as a viable asset class.
France establishes itself as a European leader in crypto adoption
In 2024, France will emerge as one of the most advanced European countries in terms of cryptocurrency adoption, with one in eight French people now holding crypto assets, an impressive increase of 28% in just one year. This spectacular increase is mainly attributed to the engagement of French youth, with those under 35 representing 57% of cryptocurrency holders in the country. Pronounced interest in bitcoin continues to dominate, although there is also a diversification of investments into other digital assets such as stablecoins and NFTs, indicating a growing curiosity and openness towards the whole crypto ecosystem.
The motivations behind this mass adoption vary from the search for attractive financial returns to the perception of cryptocurrencies as safe havens in an unstable economic context. Despite recent scandals and bankruptcies in the crypto field, which have raised doubts among some, a significant part of the French population is still considering investing in cryptos. The French invested between 32.5 and 42.5 billion euros in cryptocurrencies in 2024. France, once considered late in the adoption of cryptocurrencies, now appears as a major player on the European scene, although the path to widespread adoption still faces challenges to overcome.
Turbulence for the Ethereum Foundation under the watchful eye of the SEC
The Ethereum Foundation currently finds itself in a precarious position, under the watchful eye of the United States Securities and Exchange Commission (SEC). This scrutiny stems from the SEC’s investigation into the foundation’s financial transactions and activities, particularly after its controversial Initial Coin Offering (ICO) in 2014. The investigation is intensifying in a context where Ethereum’s move to Proof of Stake (PoS) raises questions about its classification as a “security” or “commodity”. This distinction is crucial, as it determines the regulatory framework that applies to Ethereum and could have significant implications for its future, including the viability and approval of Ethereum ETFs.
The SEC, by reviewing the structure and operations of the Switzerland-based Ethereum Foundation, as well as the recently adopted PoS consensus mechanism, seeks to determine whether Ethereum can be considered a “security” under U.S. laws. This potential new classification comes at a critical time, as companies like Prometheum take the initiative to comply with possible regulation by placing themselves under SEC oversight.
That’s the main thing this week. But if you want a more detailed recap and in-depth analysis straight to your inbox, don’t hesitate to subscribe to our weekly newsletter.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.