According to a complaint made by Consensys Software Inc., the SEC Director of Enforcement Gurbir Grewal launched an investigation into “Ethereum 2.0” on March 28, 2023, over “possible offers and sales, since at least 2018, of “certain securities, including, but not limited to ETH, as to which no registration statement was or is in effect … and for which no exemption was or is available.”

SEC And Gary Gensler Thought ETH Was A Security

The filing seemingly contradicts the federal agency’s prior stance on ETH, which included approving ETH Future ETFs in October 2023.

1/14

Some folks are confused, as to why the SEC "Eth is a security timeline" and the "Futures ETF" is bad for the SEC.

Here's a quick breakdown of why it paints Gensler into a corner:

— Adam Cochran (adamscochran.eth) (@adamscochran) April 29, 2024

Gensler, who has previously stayed quiet over ETH’s classification status, has long faced scrutiny for the agency’s regulation-by-enforcement approach.

Most notably, in June 2028, the SEC’s then-Director of Corporation Finance, Bill Hinman, gave an infamous speech alleging that ETH was not a security.

“The SEC staff has communicated to Consensys that the agency is investigating whether Consensys’ current offers and sales of ETH — transactions carried out from its own holdings as part of its normal treasury operations — are securities transactions,” the filing read. “And the staff recently requested that Consensys make a “proffer” to the SEC to state why Consensys believes its ETH sales are not securities transactions.”

After Ethereum 2.0 Investigation, Will The SEC Take Action?

Prior to the news of Monday’s court filings, blockchain development company Consensys formally filed litigation against the commission for its attempt to regulate ETH as a security.

Today, Consensys filed a lawsuit against the Securities and Exchange Commission.

The goal behind this is to ensure that Ethereum remains a vibrant and indispensable blockchain platform and to preserve access for the countless developers, market participants, and institutions…

— Consensys (@Consensys) April 25, 2024

In a blog post by Consensys founder Joe Lubin, the Ethereum founder argued that “the SEC should not be allowed to arbitrarily expand its jurisdiction to include regulating the future of the internet” and that the federal agency’s “reckless approach is bringing chaos to developers, market participants, institutions, and nations who are building or already managing critical systems running on Ethereum.”

In recent weeks, reports emerged that numerous companies linked to the Ethereum Foundation have been subpoenaed to provide information on the Swiss non-profit.

Similarly, in March, a comment posted in the foundation’s GitHub repository showed that the organization had been contacted by an unnamed “state authority.”

Having received a Wells notice on April 10, it appears to be only a matter of time before the SEC comes after Consensys legally.

The post SEC And Gary Gensler Believed Ether Was A Security For At Least A Year, New Court Docs Reveal appeared first on Cryptonews.

The April 29 achievement establishes Lido Finance as the largest decentralized finance (DeFi) protocol, boasting one million Ethereum validators and surpassing major players like Coinbase exchange, which holds 13.6% of staked Ether, according to Dune.

This surge in popularity can be attributed to the unique advantages liquid staking protocols like Lido offer users.

Users who stake their Ether with Lido receive the staked ETH (stETH) in return.

1 million validators pic.twitter.com/fELATWQPIu

— Lido (@LidoFinance) April 29, 2024

If they were to stake their Ether conventionally, their tokens would be locked and unusable for a certain period.

Liquid Staking is Fueling the Rise of DeFi

In the last quarter, the Total Value Locked (TVL) in Decentralized Finance (DeFi) increased by 65.6%, surging from a low of 436 billion in Q4 of 2023 to $97 billion in Q1 of 2024.

Currently, the price of DeFi TVL sits at $92.17 billion, according to DefiLlama.

Ethereum’s TVL growth of nearly 71% played a major role, primarily fueled by asset price increases and the practice of liquid restaking.

The total value locked (TVL) in liquid skating protocols has reached an impressive $47.7 billion, with Lido leading the pack by securing over $29.9 billion of that amount.

Concerns Regarding Lido Validators and Centralization

Crypto founders have recently voiced their worries about Lido’s growing dominance.

If a single staking token, like Lido’s stETH, becomes dominant under the DAO model, it creates a centralized point of control that is potentially vulnerable to attacks and governs a substantial portion of all Ethereum Lido validators.

Ethereum Co-Founder Vitalik Buterin has previously pointed out the potential centralization risks with Lido.

“With the DAO approach, if a single such staking token dominates, that leads to a single, potentially attackable governance gadget controlling a very large portion of all Ethereum validators,” he said.

The post Lido Finance Just Hit 1M Validators, But Can DeFi Really Take Over TradFi? appeared first on Cryptonews.

The “Franklin Templeton Ethereum TR Ethereum ETF” is listed in the create or redeem column on the DTCC website. The product has yet to be approved by the U.S. Securities and Exchange Commission (SEC).

Franklin Templeton Awaits Approval

On February 12, 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.

SEC Delays Decision on ETH ETFs

Last week, the SEC announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11. This news comes from a filing made public, leaving the future of this financial product uncertain for the time being.

The proposed ETF seeks to track the price of ether and would utilize Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.

SEC Expected to Deny Spot ETH ETF Apps May 23-24

In March, 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.

Bloomberg Intelligence analyst James Seyffart has expressed scepticism, suggesting the current round of Ether ETF applications might ultimately be denied.

Earlier today, Tron CEO and founder Justin Sun said it is unlikely an Ethereum ETF will be approved in May with the cryptocurrency in need of “long-term education with regulators.”  

Will the SEC Brand ETH a Security?

The status of Ethereum is in limbo – currently, ETH is not considered a security by the U.S. Securities and Exchange Commission (SEC) — but this could all change very quickly. It has been widely reported that several U.S.-based companies have received subpoenas attempting to label ETH as a security.

Ethereum is viewed as a decentralized cryptocurrency, rather than a security. However, regulatory agencies like the SEC continue to monitor the cryptocurrency space and may provide further guidance and sudden changes or new rulings in the future. It’s essential to stay updated on regulatory developments.

Consensys Files Lawsuit Against SEC Over Ethereum

On Thursday, it emerged, that Ethereum developer firm Consensys, managed by Joe Lubin, filed a lawsuit on April 25 against the SEC over its “overzealous regulation” around the Ethereum blockchain.

In an announcement on social media platform X, Lubin said Consensys has taken an important step towards “preserving access to ether and, by extension, the Ethereum blockchain in the U.S. We are suing the SEC and fighting back against its overzealous regulatory overreach.”

In a blog post, Consensys said the SEC’s reckless approach is causing chaos to developers, market participants, institutions, and nations that are building or already managing critical systems running on Ethereum, the world’s largest platform for decentralized applications.

The post Franklin Templeton Lists Ethereum ETF Under Ticker ‘EZET’ on DTCC appeared first on Cryptonews.

Numerous analysts have already said the Securities and Exchange Commission (SEC) is expected to deny their applications to launch an Ethereum ETF.  

In an X post, the crypto mogul weighed in on the subject matter, adding:

My honest opinion (NFA) is that an Ethereum ETF won't be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we've always been here, haven't we?

— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 28, 2024

Franklin Templeton’s Eth ETF Decision Delayed

Last week the SEC announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11, 2024. This news comes from a filing made public, leaving the future of this financial product uncertain for the time being.

There are several issuers which have filed applications for Ethereum ETFs including BlackRock, 21Shares with Ark, Fidelity, and Invesco together with Galaxy, Grayscale, VanEck, Hashdex and Franklin Templeton.

Analysts Express Scepticism

Analysts from Bloomberg Intelligence have said, “Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers.”

However, the recent SEC delays have tempered expectations. Bloomberg Intelligence analyst James Seyffart has expressed scepticism, suggesting the current round of Ether ETF applications might ultimately be denied.

In April, the SEC initiated a period of public comment regarding their potential approval. The commission is seeking feedback on proposals from Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.

Justin Sun and the SEC

When it comes to dealing with the SEC, Sun is no stranger. Most recently Sun is being sued by the SEC on allegations of fraud, market manipulation and airdropping unregistered securities. An SEC lawsuit alleges Sun and the aforementioned crypto entities broke federal law by offering and selling unregistered securities in the form of Tronix (TRX) and BitTorrent (BTT).

In updated court filings, the SEC claims that the Tron founder “travelled extensively” to the U.S. throughout “his work on behalf of the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.”

Sun owns over $1 billion in assets across various wallets linked to him, with $280 million USDD algorithmic stablecoin being his largest holding, according to Arkham’s data,

In April, Sun, a crypto billionaire and controversial entrepreneur had the Academy Award-winning music composer and producer Hans Zimmer compose the TRON Anthem.

The post Tron’s Justin Sun Says Ethereum ETF Unlikely to Be Approved in May appeared first on Cryptonews.

Price Swings Threaten Ethereum Longs

Last weekend, the price of ETH plunged by 2.5%, dropping to $3,036, triggering liquidations for some long positions.

An even steeper decline of 9% occurred on April 13, pushing the price down to $2,950 before a rebound.

ETH is currently trading at $3,052, down 0.52% in the last 24 hours.

A similar price swing this coming weekend could lead to a larger wave of liquidations. Based on current market positions, liquidations could potentially exceed $853 million in the event of another 9% decline.

Ethereum Longs at Risk Amid Potential Weekend Volatility

Adding to Ethereum’s price uncertainty is the potential rejection of spot Ethereum ETF applications by the US Securities and Exchange Commission (SEC) in May.

Several US issuers and other firms anticipate that the Securities and Exchange Commission (SEC) will reject the applications.

#Ethereum ETF is likely not approved in May, bit it surely will in August.

— Michaël van de Poppe (@CryptoMichNL) April 26, 2024

The expectation follows meetings between issuers and regulators in the past few weeks. The regulators claimed that all these meetings have been one-sided, and agency staff have not spoken on the proposed products.

Blockchain technology company Consensys has recently filed a lawsuit against the SEC over its stance on potentially classifying ETH as a security.

The combination of potential weekend volatility and the ongoing regulatory uncertainty surrounding spot Ethereum ETFs is creating a tense atmosphere for Ethereum investors. With over half a billion dollars in longs at risk, this weekend could be a major moment for Ethereum investors and the altcoin market.

The post $510 Million in Ethereum Longs at Risk Amid Potential Weekend Volatility – Massive Price Swing Incoming? appeared first on Cryptonews.

Alien CryptoPunk NFT Sees Record Price In Latest Groundbreaking Sale

As one of only nine alien punks, CryptoPunk 635 is an ultra-rare entity. It was sold as the fourth highest-value piece in the entire collection.

According to Thursday’s statement, the piece was previously owned by CryptoPunk’s parent company, Larva Labs, and last sold by the Christie’s Contemporary Art Evening Sale in May 2021. 

The deal between the NFT collection and the new owner of CryptoPunk 635, who has chosen to stay anonymous, was facilitated by high-value NFT broker, Fountain.

CryptoPunk 635, the Alien originally owned by Larva Labs and sold at the Christie’s Contemporary Art Evening Sale in May 2021, has just been acquired by an anonymous collector in a deal brokered by Fountain. We’re honored to have played a small role in this sale. Congratulations… pic.twitter.com/glisy3MZpv

— Fountain (@Fountainxyz) April 25, 2024

“We’re honored to have played a small role in this sale,” the NFT project said in Thursday’s statement. “Congratulations to the seller and the new owner!”

A Goldmine Minted On The Ethereum Blockchain

Launched in 2017 by Canadian software developers Matt Hall and John Watkinson, CryptoPunks is a collection of an estimated 10,000 uniquely generated digital depictions inspired by the cyberpunk movement. 

The project’s website states, “No two are exactly alike, and each one can be trustlessly collected by anyone interacting with the Ethereum blockchain.”

While most of the project’s collectibles are depicted as human, a few select limited edition pieces are in circulation that represent zombies, apes, and aliens.

Other digital artworks culpable to CryptoPunk 635 sold by the project have retailed for as high as $23.7 million.

Just last month, another anonymous buyer purchased an alien CryptoPunk for $16.03 million, the second-highest recorded transaction in the project’s history.

Good News For The NFT Art World’s Staying Power?

In March 2022, CryptoPunks was acquired by the wildly successful NFT collection Bored Ape Yacht Club (BAYC)’s parent company, Yuga Labs, for an undisclosed amount.

“We’ve long admired CryptoPunks, and the work of the project’s founders, Matt & John,” Yuga Labs said in a post to X shortly following the announcement. “They’ve pushed NFTs and the broader crypto world forward, and we’re honored to carry the brands they’ve built into the future we’re building at Yuga.”

Some big news to share today: Yuga has acquired the CryptoPunks and Meebits collections from @LarvaLabs, and the first thing we’re doing is giving full commercial rights to the NFT holders. Just like we did for BAYC and MAYC owners. pic.twitter.com/lAIKKvoEDj

— Yuga Labs (@yugalabs) March 11, 2022

Those who missed out on the NFT project’s latest sale need not fret: CryptoPunk 5905, a similar alien punk, is currently on the market for $15.64 million.

Despite NFT art monthly sale prices trending downward in recent years, the sale of CryptoPunk 635 and others may signify staying power for NFTs throughout the art industry.

The post Rare Alien CryptoPunk NFT Sells For Record Breaking $12.38 Million ETH appeared first on Cryptonews.

In an announcement on social media platform X, Lubin said Consensys has taken an important step towards “preserving access to ether and, by extension, the Ethereum blockchain in the U.S. We are suing the SEC and fighting back against its overzealous regulatory overreach.”

Today, Consensys took an important step towards preserving access to ether and by extension the Ethereum blockchain in the U.S. We are suing the SEC and fighting back against its overzealous regulatory overreach. You can find more of my thoughts here: https://t.co/VmvOsrCxjw… https://t.co/5IubZo69FW

— Joseph Lubin (@ethereumJoseph) April 25, 2024

SEC’s Reckless Approach Brings Chaos

In a blog post, the firm said the SEC’s reckless approach is causing chaos to developers, market participants, institutions, and nations that are building or already managing critical systems running on Ethereum, the world’s largest platform for decentralized applications. 

The firm went on to add that the SEC only has jurisdiction over securities and, until recently, has declared that ether is not and should not be treated as a security.

Consensys stressed that the SEC should not be allowed to arbitrarily expand its jurisdiction to include regulating the future of the Internet.

Ether is the native token of the Ethereum blockchain. It can be traded as a commodity (like oil), but it is also essential to the technological development of applications built on Ethereum – including applications that have clear, non-financial utility for vital sectors like healthcare, energy, transport, media, agriculture, and beyond.”, the post read. “The SEC’s approach would make it impossible for developers to innovate and build, because it would classify non-financial platforms as financial applications thus requiring the SEC’s oversight and approval.”

Coinbase Lawsuit Against SEC

This latest lawsuit by Consensys mirrors a recent Coinbase filing.  In March, it emerged that Coinbase had filed a lawsuit against the SEC, seeking a court directive for the regulatory authority to establish clear guidelines for the cryptocurrency sector.

In the lawsuit detailed in their March 11 court submission, Coinbase challenged the SEC’s lack of formal rulemaking for the crypto sector, asserting that the agency’s actions hindered the industry’s development and clarity.

SEC’s Absence of Digital Asset Rulemaking

The filing criticized the SEC for its passive stance on crypto regulation, arguing that the absence of specific rules has left the sector navigating a regulatory grey area.

Most recently, SEC Commissioners Hester Peirce and Mark Uyeda have publicly criticized the agency’s unclear cryptocurrency enforcement policies following a recent settlement with ShapeShift.

The post Consensys Files Lawsuit Against the SEC Over Ethereum Regulation appeared first on Cryptonews.

The Pyth Network is a decentralized oracle network designed which provide high-frequency pricing data to blockchains. Pyth has moved from Solana to Pythnet, its own blockchain built using Solana’s codebase. The original whitepaper proposed an initial protocol design focused on the Solana blockchain. The second version updates the design to reflect the current status of the Pyth ecosystem. In particular, this version describes a novel cross-chain model for price delivery to target chains.

In the blog post, Pyth revealed the partnership with Morph oversees the deployment of the Pyth oracle on Morph to secure its decentralized finance ecosystem.

Developers May Create ‘Cutting-Edge’ DeFi Apps

“The partnership between Pyth Network and Morph opens doors for developers to create cutting-edge DeFi applications that leverage reliable data and scalable infrastructure, driving innovation in the decentralized finance space,” said Cecilia Hsueh, the co-founder and CEO of Morph.

Morph is described as Ethereum Layer 2 chain that introduces a sequence network to promote efficiency and reduce operational overhead. Morph combines optimistic rollups with its innovative Responsive Validity Proof and ZK-proofs to verify state, explains the blog post.

The deployment of the Pyth pull oracle will empower DeFi protocols on Morph to permissionlessly request or “pull” price updates from the Pythnet appchain on demand. The gas efficiency of Pyth’s innovative pull architecture ensures that downstream users in the Morph ecosystem always benefit from continual access to high-frequency market data and the most recently updated price.

In March, Morph raised a seed funding round of $19 million with participation from Pantera Capital, Foresight Ventures, Spartan Group, and Symbolic Capital. Pyth is currently available on Morph using the Pyth Stable price sources accessible through Hermes Stable. 

Pantera Capital has described Morph as an L2 solution, incubated by Bitget, with an ecosystem tailor-made for value-driven applications.

“The uniqueness of Morph lies in its approach to leveraging Bitget’s ecosystem. On the technical side, Morph’s innovations such as a hybrid rollup scheme, modular framework, and being the first L2 to launch on Ethereum with a decentralized sequencer, position it as a leader in EVM scaling technology,” said Pantera Capital on its website.

The post Pyth Network Price Feeds Launch on Morph Giving Developers Access to Real-Time Feeds appeared first on Cryptonews.

The proposed ETF, initially filed in February, seeks to track the price of ether and would utilize Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.

Franklin Templeton’s Spot Ethereum ETF Decision Delayed: SEC Extends Deadline to June 2024

The SEC’s decision to extend the review period stems from a need for additional time to thoroughly evaluate the proposed rule changes and the complex issues surrounding the classification of Ethereum and its suitability for a spot ETF.

As stated by the SEC, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

This cautious approach mirrors a similar delay for Grayscale’s Ethereum Trust proposal, which seeks to convert into a spot ether ETF following the successful conversion of its Bitcoin trust earlier this year.

This move comes amidst a surge in applications for spot cryptocurrency ETFs, with industry giants like Fidelity and BlackRock joining the race.

Initially, analysts like Bloomberg’s James Seyffart anticipated a decision in May, noting, “Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers.”

My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied May 23rd for this round. The SEC hasn't engaged with issuers on Ethereum specifics. Exact opposite of #Bitcoin ETFs this fall. https://t.co/TyAzAOrAC5

— James Seyffart (@JSeyff) March 19, 2024

However, the recent SEC delays have tempered expectations. Seyffart himself expressed skepticism, suggesting the current round of Ether ETF applications might ultimately be denied.

Bloomberg analyst Eric Balchunas revised his approval likelihood estimate from 70% to a more conservative 35%, highlighting the growing uncertainty.

Despite the regulatory hurdles and dimmed expectations, the market’s appetite for cryptocurrency investment vehicles remains strong.

Latest data shows US Spot #Bitcoin ETFs with a total net inflow of $12.39B and daily net inflow of $62M on 22 April. pic.twitter.com/4AdnI4sqJG

— Crypto.com Research & Insights (@cryptocom_rni) April 23, 2024

The SEC’s earlier approval of spot Bitcoin ETFs in January 2024 led to a substantial influx of capital, with these ETFs attracting a cumulative net inflow of $12.39 billion as of writing.

Approval Uncertain for Spot ETH ETFs as SEC Takes Cautious Approach

Adding to the complexity surrounding spot Ethereum ETFs, the SEC has recently initiated a period of public comment regarding their potential approval. Specifically, the commission is seeking feedback on proposals from Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.

This move follows the SEC’s earlier approval of several spot Bitcoin ETFs in January 2024. However, SEC Chair Gary Gensler cautioned against interpreting this as endorsing crypto assets or their regulatory status.

Despite initial optimism, the likelihood of a spot Ethereum ETF approval seems to have considerably waned. Industry figures like VanEck CEO Jan van Eck have voiced skepticism about the approval prospects, suggesting that his firm’s application might face rejection.

CoinShares CEO Jean-Marie Mognetti shared this sentiment, predicting a prolonged period of inaction from the SEC on pending applications.

Adding to the pressure, Democratic Senators Laphonza Butler and Jack Reed have urged SEC Chair Gensler to exercise caution in approving crypto-based ETFs, citing potential risks to investors and concerns about inadequate regulatory safeguards.

The post SEC Delays Decision on Franklin Templeton’s Spot Ethereum ETF Application appeared first on Cryptonews.

According to a report by Michael Nadeau, an analyst at The DeFi Report, Ethereum’s Q1 income represents a staggering 200% increase compared to the $123 million profit recorded in Q4 2023.

A major contributing factor to this substantial growth was the surge in decentralized finance (DeFi) activity during the quarter, driving heightened network participation.

Ethereum Fee Revenue Reaches $1.17B in Q1

Ethereum’s fee revenue, generated through user transactions, reached a notable milestone of $1.17 billion in Q1, marking a remarkable 155% increase from the same period in 2023 and an 80% upswing from the previous quarter. 

The amplified network activity, fueled by the surge in DeFi applications, has propelled Ethereum’s average daily transactions in 2024 to surpass last year’s figures.

The current average of 1.15 million daily transactions is in close proximity to the peak levels witnessed during Ethereum’s momentous run in 2021.

It is worth noting that Ethereum, which was launched in 2015, achieved its first profitable year in 2023, amassing $623 million in revenue. 

Despite the revenues being significantly lower (75%) than the peak of $9.9 billion attained in 2021, this achievement can be attributed to the transition to a proof-of-stake consensus in September 2022, resulting in a substantial drop in token incentives paid to miners, now known as validators.

Cryptocurrencies to Outperform Other Assets

Nadeau said that “crypto will outperform everything else” in the coming years. 

He anticipates favorable liquidity conditions for the next few years, driven by the need for refinancing a substantial amount of debt in the United States and the market’s expectation of three rate cuts from the Federal Reserve. 

These factors are poised to provide a tailwind for risk assets like tech stocks and quality cryptocurrencies.

Nadeau identified three additional catalysts that indicate a bullish setup for the crypto market. 

Firstly, the introduction of U.S. spot Bitcoin exchange-traded funds (ETFs) is expected to increase interest and accessibility to cryptocurrencies. 

Secondly, the upcoming Bitcoin halving, scheduled for April 20, has historically prompted a bull run in the subsequent year. 

Lastly, Nadeau highlighted the ongoing innovation cycle, which he believes will attract new venture funding and reignite retail interest in crypto as the industry matures.

While Bitcoin typically outperforms in the early stages of a bull market due to its widespread recognition, Nadeau noted that Ethereum and altcoins tend to outperform Bitcoin in the later stages of the cycle. 

Altcoins, which have a clear product market fit, have demonstrated substantial growth in the previous cycles, surpassing Bitcoin’s performance across the entire duration.

Meanwhile, the Ethereum network has surpassed one million validators, with approximately 32 million Ether, worth around $114 billion, staked within the network.

As reported, data from the Dune Analytics dashboard, which tracks Ethereum staking progress, show that the validator count reached the one million mark on March 28. 

The 32 million ETH staked represents approximately 26% of the total supply, highlighting the substantial commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism.

The post Ethereum Sees $365 Million in Revenue in Q1, Up by 155% YoY appeared first on Cryptonews.

The plea was presented in a letter from Griffith’s attorney, Glen Garrett McGorty, to Judge Kevin Castel of the United States District Court for the Southern District of New York on April 17.

The letter argues for a revision of Griffith’s sentence based on recent amendments to U.S. sentencing guidelines. 

These revisions include a provision for a two-point offense level reduction for certain “zero-point” offenders. 

Griffith’s legal team asserts that he qualifies for this reduction under the outlined criteria.

Griffith Sentenced to 63 Months in Prison

Griffith was originally sentenced to 63 months in prison and ordered to pay a $100,000 fine in April 2022 after pleading guilty to violating U.S. sanctions laws. 

His offense involved attending a conference in North Korea and providing assistance to the country in using blockchain technology, despite economic sanctions imposed by the United States.

The requested reduction in Griffith’s sentence would result in a lowering of his total offense level from 26 to 24.

This would correspondingly adjust the guidelines range for his sentence to 51 to 63 months, potentially reducing his term by a year or more.

In the letter, Griffith’s defense team urges the court to instruct the U.S. Probation Office to prepare a revised pre-sentence investigation report and schedule a resentencing hearing. 

They also seek an opportunity for briefing to present updated information and arguments in support of their reduction request.

A “zero-point” offender, as defined in the revised guidelines, refers to a first-time, non-violent offender whose crime demonstrates a lower risk of recidivism compared to others. 

Griffith’s defense contends that he falls within this category.

In addition to his prison sentence, Griffith also faced a 10-year ban on export privileges imposed by the U.S. Department of Commerce in May 2023. 

This ban prohibited him from engaging in any transactions involving commodities, software, or technology subject to U.S. export regulations. The ban was instituted while he was serving the initial year of his five-year sentence.

Tornado Cash Developer Challenges Charges

Last month, Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, submitted a motion to dismiss all three charges against him, claiming that he did not operate a money laundering business and did not violate the International Emergency Economic Powers Act.

In a filing with the United States District Court for the Southern District of New York, Storm’s lawyers argued that he cannot be accused of conspiring to launder funds.

According to Storm’s legal team, Tornado Cash was developed, became immutable, and was publicly available before it was utilized by the hacking groups that were sanctioned by the U.S. Department of Treasury. 

They said that Storm had limited control over preventing a “sanctioned entity from using it” by the time the alleged misconduct occurred.

The post Former Ethereum Developer Virgil Griffith Seeks Sentence Reduction for Assisting North Korea with Blockchain Technology appeared first on Cryptonews.

In an interview with CNBC on April 9, van Eck stated that his firm’s spot Ethereum ETF application will “probably be rejected.”

VanEck, alongside Cathie Wood’s ARK Invest, was among the first to file for a spot Ether ETF in the United States. 

Both firms are currently awaiting a final decision, scheduled for May 23 and May 24, respectively. 

van Eck Says There Has Been a Lack of Feedback 

van Eck highlighted the regulatory process, explaining that regulators provide comments on the application, and in the case of Ethereum, there has been a notable lack of feedback.

CoinShares CEO Jean-Marie Mognetti has shared a similar pessimistic view, stating that he does not foresee any approvals occurring in the near future. 

The SEC has maintained a prolonged period of inaction on the seven pending applications for spot Ether ETFs. 

This ongoing “radio silence” between the regulator and prospective fund issuers, as noted by commentators including Senior Bloomberg ETF analyst Eric Balchunas, contributes to the decreasing likelihood of an ETF approval in May.

Van Eck’s Ether ETF application is one of seven awaiting approval, including those from Grayscale, BlackRock, and Fidelity. 

Balchunas, who previously assigned a 70% chance of approval in May, has revised his odds to 35%. 

In a post on X, he reiterated van Eck’s sentiments and highlighted the need for the SEC to provide comments and critical feedback, which has been lacking thus far.

Likewise, ETF analyst James Seyffart echoed this sentiment, emphasizing that the absence of comments or interactions from the SEC is concerning.

He questioned the reasons behind the SEC’s months-long inaction when the applications were anticipated.

“There’s no reason for the SEC to have done absolutely nothing for months when we knew this was coming.”

Nice scoop from @joelight. Def interesting but no change our odds. As we've said, need SEC to give comments on the filing documents (the "critical feedback" he mentions) and that still ain't happening, even in person they offering nothing. Silence is violence. https://t.co/z76KTtdmHU

— Eric Balchunas (@EricBalchunas) April 8, 2024

Spot Bitcoin ETFs Start Week With Outflows

Spot Bitcoin (BTC) ETFs in the United States have experienced a reversal in investor sentiment, seeing net outflows since the start of the week following four consecutive days of inflows. 

The significant contributor to the shift was Grayscale’s GBTC spot ETF, which recorded a single-day net outflow surpassing $303 million on Monday and another $154 million on Tuesday. 

Aside from GBTC, other Bitcoin ETFs have seen net inflows during this period, with BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF leading the way.

Meanwhile, VanEck’s spot Bitcoin ETF, traded under the ticker HODL, is currently the fifth largest among the ten recently launched funds (excluding Grayscale). 

Since its mid-January launch, it has seen an inflow of $461.7 million, according to Farside Investors data. 

Van Eck emphasized the success of Bitcoin ETFs, describing Bitcoin as a “maturing asset” and noting that there are still many investors yet to gain exposure to the cryptocurrency.

The post VanEck CEO Says SEC Unlikely to Approve Spot Ether ETFs in May appeared first on Cryptonews.

Per a Monday filing with the U.S. Securities and Exchange Commission (SEC), the Defiance 2X Ether Strategy ETF is an ETH Futures ETF that seeks to double the daily performance of the rolling CME Ether Futures Index. That means exaggerated gains on Ether’s strong days, but pronounced losses during selloffs.

Defiance ETFs Making Waves

“Because the Fund seeks daily leveraged investment results, it is very different from most other exchange-traded funds,” reads the fund’s prospectus. “It is also riskier than alternatives that do not use leverage.”

Defiance ETFs just filed for a 2x leveraged #ethereum futures ETF. Will potentially trade under the ticker $ETHL pic.twitter.com/9Z6M6tcQ3V

— James Seyffart (@JSeyff) April 8, 2024

Leveraged ETFs are risky not only because of their volatility but also because they naturally underperform against the assets they track over longer periods. Defiance noted that its fund will lose money if Ether futures trade flat or even if they modestly rise over a period longer than a day.

“The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios,” the company wrote.

Earlier this week, Defiance also filed for its 2X Short MSTR ETF – a leveraged short play on the Bitcoin development company MicroStrategy, which investors say is a leveraged play on Bitcoin (BTC). Blockstream CEO Adam Back blasted the ETF as a “terrible product” that would get investors “rekt.”

On Tuesday, ProShares followed Defiance with filings for its own 2X and -2X spot Ether ETFs.

The Importance Of Ether Futures ETFs

The filing comes after the SEC approved Ether futures ETFs for public trading in October. Roughly a dozen asset managers flooded the SEC’s mailbox with applications after the agency approved the first 2X Bitcoin futures ETF from Volatility Shares in late June.

That fund – which trades under the ticker BITX—is up 91% year to date, compared to Bitcoin’s 55% gains.

The logic was that if the SEC was willing to approve such a risky product, it may finally be open to Ether futures ETFs – the second largest crypto which historically had higher beta than BTC.

Though the first Ether ETFs pulled mediocre volume next to their Bitcoin counterparts, their approval signaled a potential change in how the SEC might treat crypto ETFs going forward. Three months later, Bitcoin spot ETFs hit the market, pulling $12.3 billion in net inflows since going live.

Investors now wait for the SEC to approve the ETH spot ETFs, though experts doubt they’ll be approved soon.

The post Defiance ETFs Files For 2X Leveraged ETH Futures ETF appeared first on Cryptonews.

The campaign was called out by a user on X, who raised a red flag about the presence of potentially malicious phishing scam ads. 

Warning Issued After Phishing Campaign Targets Etherscan Users

All the other phishing sites it's linked to pic.twitter.com/4PjxnYn3ny

— McBiblets (@mcbiblets) April 7, 2024

On April 8, McBiblets, flagged certain advertisements on Etherscan as potential wallet drainers, cautioning users against being redirected to phishing websites upon clicking on such ads.

Further investigation revealed that these phishing advertisements were not limited to Etherscan but were also spotted on various known phishing websites. Web3 security platform Scam Sniffer swiftly responded to the warning and launched an investigation.

Alert: Phishing ads running rampant on Google, Twitter, Bing, & DuckDuckGo are now targeting Etherscan users.

Etherscan aggregates ads from platforms like Coinzilla & Persona, where insufficient filtering could lead to exposure to phishing attempts. pic.twitter.com/EGDLiCrrAa

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) April 8, 2024

Shortly after that, Scam Sniffer confirmed the presence of a new scam through their official X account.

“Etherscan aggregates ads from platforms like Coinzilla & Persona, where insufficient filtering could lead to exposure to phishing attempts,” Scam Sniffer explained.

Scam Sniffer uncovered the extent of the phishing campaign, noting that the advertisements were spreading beyond Etherscan and popping up on popular search engines like Google, Bing, DuckDuckGo, and social media platforms.

Renowned on-chain detective ZachXBT delved further. He disclosed that the phishing on Etherscan is linked to a draining service. Furthermore, ZachXBT revealed that the draining service had phished a six-figure sum from a victim.

A customer of a popular draining service just phished six figures from a victim.

Worked with the team to blacklist the phishing scammer before they could dump DSYNC on holders.

Theft address
0x4689208d311785359C4E060ee30011d8e1a68bf0 pic.twitter.com/hNsoI5b4pD

— ZachXBT (@zachxbt) April 8, 2024

ZachXBT also shared the address of the theft. When the address was looked up on-chain, it was found that the wallet contained 87.08 Ethereum (ETH), equivalent to approximately $298,972 at the time of reporting.

This amount is equivalent to approximately $298,972 at the time of writing. Additionally, the scammer holds other tokens and coins, including $25,375 worth of OPSEC, $9,642 worth of PEPE, and $4,207 worth of Ethena (ENA).

Although the notorious cyber phishing organization Angel Drainer is suspected of orchestrating this ongoing attack against Etherscan users, concrete evidence about the perpetrators remains elusive.

The modus operandi of the wallet drainer scam involves enticing users to counterfeit websites and prompting them to link their crypto wallets. Once linked, scammers can siphon off funds into their personal wallet addresses without requiring user authentication or permission.

Chief Information Security Officer 23pds from blockchain security firm SlowMist emphasized the warning, advising users to exercise caution due to the presence of phishing ads on Etherscan.

注意了，有钓鱼广告上etherscan投放广告 https://t.co/gMAwZJwMeF

— 23pds (@im23pds) April 7, 2024

Phishing Attacks on Crypto Users Lead to $300 Million in Losses in 2023, Reports Scam Sniffer

Phishing attacks pose a significant threat to crypto users, with nearly $300 million stolen from over 324,000 victims through wallet drainers in 2023 alone, according to Scam Sniffer.

Losses due to phishing in 2024 have already exceeded $100 million.

To better protect our users, the Scam Sniffer Chrome extension has now started detecting phishing links on Twitter proactively! pic.twitter.com/eYHPcfPxUH

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) March 11, 2024

According to Scam Sniffer data, phishing attacks scammed around 97,000 crypto users of $104 million in the first few months of this year. Losses were $55 million in January, with $46.8 million coming in February.

Ethereum users suffered the most damage, losing $78 million in assets, including ETH and ERC20 tokens, according to a breakdown of the attacks. The primary tactic used by cybercriminals was to trick victims into signing harmful phishing signatures like “Uniswap Permit2” and “increaseAllowance,” which allowed the malicious players to acquire unauthorized access to their victims’ cash.

“Most of the thefts of all ERC20 tokens were due to assets being stolen as a result of signing phishing signatures such as Permit, IncreaseAllowance, and Uniswap Permit2,” Sniffer explained in a statement.

Also, Scam Sniffer discovered that the majority of victims were duped by false comments on social media platforms, particularly X. The attackers frequently pose as respectable cryptocurrency organizations to attract unwary people to phishing sites where their digital assets are stolen.

Despite efforts to shut down such scams, Scam Sniffer notes that “phishing gangs” often relocate their operations to different platforms, indicating a persistent challenge in combating fraudulent activities in the crypto space.

The post Phishing Campaigns Targeting Etherscan Users Through Advertisements Identified appeared first on Cryptonews.

What You’ll Find in This March Ethereum Analysis:

1. 1. What is Ethereum?
   2. Ethereum Price Performance and On-chain Data Analysis
   3. When will the ETH ETF be approved?
   4. Ethereum Ecosystem Updates 
   5. Ethereum-Based Protocols and DEXs
   6. Ethereum NFTs and Gaming Updates
   7. Looking Ahead – Can The Ethereum Price Go Even Higher?

What is Ethereum?

Founded in 2013 by Vitalik Buterin, Ethereum serves as a distributed blockchain computing platform designed for the execution of smart contracts and decentralized applications (DApps). The network enables users to create and innovate extensively with smart contracts, catalyzing the emergence of various assets and industries such as decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), Web3, and beyond. At its core, Ethereum features an execution engine tailored for smart contract processing, known as the Ethereum Virtual Machine (EVM). In addition, Ethereum employs a proof-of-stake (PoS) consensus mechanism, which enhances its scalability and sustainability.

ETH Price Performance and Ethereum On-Chain Data Analysis 

On March 11, the Ethereum price hit $4,000 for the first time since 2021. However, after rallying to $4,094 leading up to the Dencun upgrade, ETH underperformed compared to Bitcoin (BTC) and the broader crypto market over the past month. The Ethereum price fell to its low for the month of $3,367 on March 20 and closed the month at $3,636.

The potential approval of a spot Ether exchange-traded fund (ETF) remains an important catalyst for ETH to rise above the $4,000 mark. The United States Securities and Exchange Commission (SEC) is currently evaluating the matter, with a final decision expected by May 23. 

Furthermore, recent updates to the Ethereum protocol should not be underestimated. The Dencun hard fork, which took place on March 13, was designed to increase network scalability and improve Layer 2 (L2) data processing capabilities and has attracted strong interest from rollup solutions. As a result, transaction fees for most applications on Ethereum L2s like Arbitrum, Optimism, Startnet, and Zora Network have been significantly reduced. 

On Ethereum, reductions in fees were observed as well. Total fees on Ethereum dropped from $38.7 million on March 5 to $9.4 million on March 31. 

Total revenues on Ethereum decreased by 48% in the 10 days following EIP-4844 was implemented. The proposal introduces a novel transaction type capable of accepting data blobs. 

With a total value locked (TVL) of between $47.2 billion and $57.9 billion (peaking on March 13), Ethereum had the largest market share of any blockchain last month.

However, there has been some volatility in Ethereum network activity over the past month. The number of daily active addresses across the Ethereum ecosystem increased from 413k on March 1 to 534k on March 20, and then dropped to 467k on March 31.

Ethereum’s daily transaction volume also fluctuated during the month, rising from 1.2 million on March 1 to 1.4 million on March 19, and falling back to 1.2 million by the end of the month. 

When will the ETH ETF be approved?

The potential approval of a spot Ether ETF is one of the most eagerly anticipated events that could significantly impact the short-to-medium-term Ethereum price. Compared to the previous approval of Bitcoin ETFs, the approval of an ETH ETF is less certain, as it is expected to face increased regulatory scrutiny from the SEC. 

In March, the SEC postponed its decision on VanEck’s ETF application until May 23, and similarly delayed decisions on the Hashdex and ARK 21Shares Spot ETH ETFs until late May.

Recent filings with the SEC by big asset management firms, including Fidelity (on March 27) and Bitwise (on March 28) to create spot ETH ETFs underscore the growing interest in Ether-based financial products. Fidelity’s filing, in particular, indicates its intention to put some of the ETH it holds to work, demonstrating confidence in Ether’s long-term prospects. 

Additionally, the London Stock Exchange (LSE) announced it would accept applications for Ether and Bitcoin crypto exchange-traded notes (ETNs) in the second quarter of 2024, further underscoring the growing mainstream acceptance and integration of cryptocurrencies into traditional financial systems.

However, despite such strong interest in ETH ETFs, this back-and-forth dialogue between industry players and regulators underscores the complexities and nuances of integrating Ether-based financial instruments into traditional financial systems. Unsurprisingly, the Grayscale Ethereum Trust discount has fallen to its lowest level since November 2023 amid fading hopes for a spot ETF in May. 

Ethereum Ecosystem Updates 

According to data from Coin98 Analytics, the Ethereum ecosystem experienced significant growth in the first quarter of 2024. Ethereum tripled its earnings on a quarter-over-quarter basis in Q1 2024, reaching $369 million. The amount represented a 210% year-over-year increase from $119 million in Q1 2023.

Ethereum’s Q1 2024 fees and revenues increased 79% and 85% quarter-over-quarter, respectively. According to the data, Ethereum generated $1.2 billion in transaction fee revenue in Q1 2024, which is 155% more than in the first quarter of last year. Total Ethereum revenue reached $1 billion in Q1 2024, up 186% from $385 million last year. 

In March 2024, the Ethereum ecosystem witnessed several significant updates and developments that promise to shape its future trajectory.

BlackRock Launches BUIDL

BlackRock, the world’s largest asset manager, announced an initiative to launch a tokenized asset fund on Ethereum, solidifying the network’s importance. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) will be fully collateralized by cash, U.S. Treasury bills, and repurchase agreements, offering qualified investors the opportunity to earn U.S. dollar income. In a strong symbolic gesture, BlackRock deposited $100 million in USDC on the Ethereum network.

Google Enables Crypto Wallet Searches

Google expanded its Ethereum search features to include human-readable Ethereum Name Service (ENS) domains, allowing users to view wallet balances associated with ENS names directly in search results. This integration further bridges the gap between traditional search functionality and blockchain data, improving accessibility and usability for users.

Nansen Now Supports SportFi

Nansen, a blockchain analytics platform, integrated blockchain data from SportFi chain Chiliz and Ethereum rollup zkSync on March 28. This integration provides a comprehensive overview of both ecosystems, allowing cryptocurrency teams to run queries and gain insights from raw data, thereby enhancing their decision-making capabilities.

Pectra Upgrade To Raise Ethereum Validator Stakes

Additionally, Ethereum’s Pectra upgrade is set to raise the maximum validator stake to 2,048 ETH, a significant increase from the current 32 ETH. This move, expected by the end of the year, aims to enhance the security and decentralization of the Ethereum network.

Coinbase Tackles Centralization on Ethereum

Furthermore, on March 26, Ethereum client diversity improved as the market share of Geth, a major Ethereum execution client, dropped from 84% to 63%. Coinbase’s decision to switch around half of its validators to Nethermind contributed to this diversification, addressing long-standing concerns about centralization risks within the Ethereum network.

Developers Launch “Pump The Gas” Initiative

Lastly, on March 21, Ethereum developers launched the “Pump The Gas” initiative to increase the blockchain network’s gas limit from 30 million to 40 million. This initiative aims to reduce transaction fees on layer 1, potentially improving Ethereum’s scalability and usability.

Ethereum-Based Protocols and DEXs

Ethereum Layer 2 protocols experienced a significant drop in transaction fees in March after the Dencun upgrade, as reported above. This led to increased translation on some L2 networks. 

Base Hits New Daily Users High

For example, Coinbase’s Ethereum-based Layer 2 network Base saw a new high in daily transactions, which jumped from approximately. 440,000 before the upgrade to over 2 million on March 16, accompanied by a massive 3,200% increase in daily new users on Base –  (666,866 on March 16).

Starknet Introduces Fee-Saving Measures

On March 12, Layer-2 scaling protocol Starknet announced the rollout of additional fee-saving measures to coincide with the Dencun upgrade. This hard fork aims to transform the storage of data on the Ethereum mainnet, introducing “blob space” as a cost-effective alternative to the traditional call data method. 

The protocol’s transition to a proto-danksharding, inspired by the Ethereum Improvement Proposal (EIP-4844), is expected to result in immediate fee reductions. In addition, the Foundation is preparing to release version 0.13.1, which will move from the costly call data method to the more economical blobs transaction type, with the goal of significantly reducing fees. This move is expected to have a significant impact on Starknet’s gas expenses, as call data accounts for nearly 90% of fees. In addition, a new hash system will be deployed to increase the protocol’s transaction capacity. 

Uniswap Still Leads the DEX Space

In March, Uniswap continued to maintain its position as the leading DEX on the Ethereum blockchain. In particular, Uniswap’s governance token, UNI, surged 46%, topping $16 on March 6 and reaching a peak not seen since January 2022. This surge was complemented by a 54% increase in trading volume ($36,5 billion in February vs. $79,5 billion in March).

This follows a proposal by the Uniswap Foundation to upgrade the protocol’s fee redistribution governance with the goal of increasing community participation. In particular, the upgrade will focus on the distribution of the protocol fee to the holders of the UNI token.

MakerDAO Introduced “Endgame”

Decentralized finance protocol MakerDAO’s ambitious “Endgame” transformation aims to grow the DeFi stablecoin market capitalization from $4.5 billion to over $100 billion, positioning it as a formidable competitor to Tether (USTD). 

Launch Season is upon us!

Endgame focuses MakerDAO towards scalable resilience and sustainable user growth: The goal is 100 billion Dai and beyond

Launch Season will bring the most important yield farming and UX features rapidly to market

More: https://t.co/gWLWBWpEq8

(1/9) pic.twitter.com/Xujg04uYX2

— Rune (@RuneKek) March 12, 2024

Ethena Topped Earnings Charts

Ethena, a synthetic dollar protocol built on Ethereum, became the highest-earning DApp after surpassing $6.8 million in daily cumulative revenue in the first week of March. The only blockchains to surpass Ethena’s revenue were Tron, with $38.6 million, and Ethereum, with $182.5 million in daily cumulative revenue over the seven days.

Ethena nr 3 in terms of revenue pic.twitter.com/c14c3HL2Td

— Seraphim (@MacroMate8) March 8, 2024

Eclipse Secured Series A Funding

Layer 2 developer Eclipse Labs secured $50 million in Series A funding, led by Placeholder and Hack VC. This funding aims to bolster Ethereum scalability using the Solana Virtual Machine (SVM). By integrating SVM’s high performance with the Ethereum ecosystem liquidity, Eclipse Labs aims to offer a differentiated Layer 2 solution. With collaborations with Rarible, Pyth Network, and Solend, Eclipse Labs targets a mainnet launch in Q2, promising a scalable and composable Layer 2 network.

Optimism Foundation Sold 19.5 Million OP Tokens 

The Optimism Foundation, the entity behind the Ethereum layer-2 blockchain Optimism, revealed a private sale of approximately 19.5 million of its governance tokens on March 8. With each Optimism (OP) token valued at around $4.62, the total worth of the tokens sold stands at approximately $90 million at the current market value. Notably, the foundation has stipulated a two-year vesting period for the sold tokens, preventing buyers from trading them before this period lapses. 

Morph Raised $20 Million in Seed Funding

Morph, a developer of Ethereum’s Layer 2 network, successfully raised $20 million in combined seed and angel funding rounds. The $19 million seed round was spearheaded by Dragonfly, with contributions from Pantera Capital, Foresight Ventures, the Spartan Group, Symbolic Capital, and other esteemed investors. Additionally, the angel round, amounting to $1 million, enlisted the support of prominent figures, including Sandeep Nailwal from Polygon and Alex Svanevik from Nansen.

Polygon Experienced Downtime Issues

On March 24, Ethereum layer-2 scaling solution Polygon reported downtime for its zero-knowledge Ethereum Virtual Machine (zkEVM) due to a problem with its blockchain sequencer. Polygon has addressed its two million followers, emphasizing that the issue is isolated to zkEVM and does not affect any other chain deployed using the Polygon chain development kit (CDK).

Ethereum NFTs and Gaming Updates

The NFT market and NFT sales, in general, saw a slight dip in March, but Ethereum managed to remain the first most popular blockchain network for trading in the NFT ecosystem. 

According to CryptoSlam data, the sales volume of Ethereum-based NFTs reached $489.5 million in March, 11% less than in February ($553.4 million). The data further revealed that the Ethereum network attracted around 98k buyers and 84k sellers of NFTs in March. The number of NFT transactions on Ethereum reached more than 648k in March, 22% less than the previous month. 

Despite the Ethereum price reaching two-year highs, the prices of top NFTs witnessed a significant decline in March. The ETH-denominated floor prices for several of the top traded collections on NFT marketplace Blur plummeted. Yuga Labs’ Bored Ape and Mutant Ape Yacht Club saw drops of 44% and 35%, respectively. Additionally, collections such as DeGods experienced a decline of over 55%. 

However, in the midst of the downturn, NFT’s blue-chip CryptoPunks collection on the Ethereum blockchain continued to make headlines with record-breaking sales. In March, a rare Alien-like Punk fetched approximately $16 million in ETH, marking another milestone for the highly sought-after collection. Only nine Alien CryptoPunks have ever been minted, adding to the scarcity and desirability of these digital assets.

The gaming sector continues to be a major focus for Layer 2 projects on the Ethereum blockchain. Layer 2 networks Starknet and Arbitrum doubled down on promoting gaming development. The Starknet Foundation allocated $125.5 million worth of tokens to advance gaming initiatives on the network, while Arbitrum launched the Gaming Catalyst Program (GCP) to spur the growth of Web3 gaming, demonstrating the increasing focus on blockchain-based gaming within the Ethereum ecosystem. 

Notable Ethereum NFT Launches in March:

• The Legacy Cowls (March 29 – April 5). This NFT collection was created by DC Comics, Warner Brothers Discovery Group, and Candy Digital to commemorate the 85th anniversary of the superhero Batman. This collection revolves around Batman-themed NFTs and is based on the inaugural DC comic series on the blockchain, titled The Legacy Cowl, which originated in 2022. The collection consists of a remarkable 11,544 digital collectibles, each representing a piece of Batman’s legacy.
• African Beauty (March 8 – March 15): The African Beauty features 10,000 NFTs and aims to celebrate the diversity and beauty of Africa while empowering African women. By purchasing an African Beauty NFT, collectors were able to help empower and educate women and girls across Africa. 
• Lumi Punks (March 17 – March 24): Lumi Punks features 900 NFT fashion items tailored for the metaverse, a virtual reality space for interaction, creation, and exploration. These items can be explored, bought, sold, and traded, and are compatible with various games and VR platforms.
• RoboMetaMorphs (February 29 – March 7): This collection is part of Kraut 9, an AI-powered NFT launchpad and Web3 marketing agency, and showcases skillful artwork depicting a robotic civilization emerging from the remains of Earth. Designed by German artist Hagen Pietsch in collaboration with Midjourney, an AI art generator, and enhanced with Photoshop, the collection features 8,888 NFTs.

Looking ahead – Can the Ethereum Price Go Even Higher?

In conclusion, despite ETH reaching $4,000 in March for the first time since 2021, its performance has been subdued compared to BTC and the broader crypto market over the past month. 

The Ethereum ecosystem witnessed various updates and developments, including initiatives by major asset management firms such as Fidelity and Bitwise to create spot Ether ETFs, highlighting the growing interest in Ether-based financial products. In addition, the London Stock Exchange’s announcement to accept applications for Ether and Bitcoin ETNs in Q2 2024 further underscores the mainstream acceptance of cryptocurrencies.

Furthermore, recent updates to the Ethereum protocol, in particular the Dencun hard fork, aimed to improve scalability and reduce transaction fees on L2 solutions such as Arbitrum, Optimism, Starknet, and Zora Network. This also led to a notable decrease in fees on Ethereum in March, from $38.7 million to $9.4 million by the end of the month.

In the DeFi sector, MakerDAO’s ambitious “Endgame” transformation aims to grow the DeFi stablecoin market cap from $4.5 billion to over $100 billion, positioning it as a competitor to Tether. 

Additionally, Ethereum’s NFT market saw a slight dip in March, although it remained the most traded blockchain network in the NFT ecosystem, with turnover reaching $489.5 million. Despite price declines for top NFT collections, the Ethereum-based CryptoPunks NFT collection continued to make headlines with record-breaking sales, demonstrating the enduring appeal of digital collectibles.

Looking ahead, Ethereum’s focus on scalability, regulatory developments regarding ETH ETFs, and continued innovation in the DeFi and NFT sectors are likely to shape its future trajectory and adoption.

The post March 2024: ETH Hit $4000, What Else Happened In The Ethereum Ecosystem? appeared first on Cryptonews.

According to the statement, Starknet discovered a “rounding error bug that led to the reorg of blocks” causing the transaction backlog to hit full capacity.

Ethereum Layer-2 Protocol Back Up and Following Block Outage

“Consequently, there were a few minutes during which new transactions could not be accepted for processing and were therefore rejected,” the statement continued, revealing that “some transactions were reverted due to changing parameters (e.g. timestamps).”

gm!

Earlier today, we identified a rounding error bug that led to a reorg of blocks. Starknet’s block production continued as usual. However, the reorg caused the transaction backlog to reach full capacity. Consequently, there were a few minutes during which new transactions…

— Starknet (@Starknet) April 5, 2024

“The backlog was cleared and normal network operation resumed,” the protocol added. “We are in touch with relevant parties to ensure there are no further issues.”

Starknet’s Series Of Challenges

Data from CoinGecko shows that the outage caused the price of Starknet to drop to $1.82 by Thursday morning, though by the time of publication that had increased to $1.91.

Thursday’s four-hour outage marks the latest challenge for the Israel-based protocol, having experienced delays in early March following the adoption of Ethereum’s Dencun upgrade designed to reduce Layer-2 rollup fees.

In January, Starknet’s parent company, StarkWare Industries co-founder and CEO Uri Kolodny stepped down from his role, prompting the company’s president, Eli Ben-Sasson, to take over his role.

“Vicious medical challenges at home require my undivided attention,” Kolodny said in a statement at the time. “I took a LoA a year ago, but unfortunately that wasn’t nearly enough.”

Writing this is hard for me.

I am stepping down as @StarkWareLtd’s CEO. Vicious medical challenges at home require my undivided attention. I took a LoA a year ago, but unfortunately that wasn't nearly enough.

I will stay on as a board member of both StarkWare and the @starknet…

— Uri Kolodny (@ukolodny) January 11, 2024

Kolodny said he was confident that Ben-Sasson would “lead StarkWare forward with talent and devotion, to great heights.”

Massive Scalability, Lower Costs

Despite slight controversy, Starknet is set to formally unlock its cryptocurrency, $STRK, in April following a major 728 million airdrop in February, which saw over 220 million claimed within mere hours of its launch.

According to CoinGecko, the protocol has a market cap of nearly $1.38 billion and a fully diluted valuation of $18.9 billion, putting it on par with several heavy-hitters across layer-2.

Founded in 2018, StarkWare Industries develops zero-knowledge cryptographic proofs to address scalability.

According to Starknet’s site, the Ethereum layer-2 protocol seeks to pair low costs with fast transactions and massive scaling. 

Those eligible for the first round of STRK allocation from February have until June 20 to claim their tokens, while a full analysis regarding Thursday’s outage incident will be unveiled by Starknet at a to-be-determined date.

The post Ethereum Layer-2 Protocol Starknet Sheds Light On What Caused 4-Hour Block Outage appeared first on Cryptonews.

The SEC called for comments specifically on Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.

SEC Calls For Comment On Spot Ethereum Approval

According to the most recent court documents, the federal agency is looking “to solicit comments on the proposed rule change” from “interested persons.”

“The proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest in that it will facilitate the listing and trading of an additional type of exchange-traded product that will enhance competition among market participants, to the benefit of investors and the marketplace,” the court filing states.

What Are The Odds Of Spot ETH ETF Approval?

News of the SEC’s request for public comment follows the agency’s January 2024 approval of several spot Bitcoin ETFs, a move that many in the crypto community feel will prompt greater mainstream adoption of cryptocurrencies in the future. 

In the months since their approval, spot Bitcoin ETFs have surpassed the market capitalization of traditional silver ETFs, drawing in an estimated $862 million in inflows last week.

SEC Chair Gary Gensler cautioned the public that his agency’s approval of spot Bitcoin ETFs “should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

“Nor does the approval signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws,” he continued.

Getting tagged in tweets about this filing, the Eth corr study, and other eth etf hopium. I respect it all but our odds for Eth ETF approval in May remain a pessimistic 25% (I’d go lower if I could tbh). There’s 7 wks till deadline and radio silence from SEC = bleak. (Again,… https://t.co/fc8elrYm64

— Eric Balchunas (@EricBalchunas) March 28, 2024

Currently, experts estimate that the chances for spot Ethereum ETF approval by May have slimmed exponentially over the past few months, with Bloomberg ETF analyst Eric Balchunas putting the odds at “a pessimistic 25%.”

A Regulatory Divide At The SEC?

Under Gensler’s direction, the SEC has long taken an anti-crypto stance, often taking a regulation-by-enforcement approach instead of a clear regulatory framework.

At the Practicing Law Institute’s SEC Speaks event on Tuesday, Gurbir S. Grewal, the commission’s Director of its Enforcement Division, criticized the crypto sector for its “significant non-compliance” with regulation.

SEC Commissioner Hester Pierce, however, voiced rare dissent from within the agency over its enforcement approach – going so far as to say the SEC was “scaring people off.”

It’s unclear how this ideological divide within the federal agency will play out regarding the potential approval of spot ETH ETFs.

The post SEC Asks For Public Comment Regarding Spot Ethereum ETF Approval appeared first on Cryptonews.

The project has garnered 333,839 Ether, including ETH, liquid staking tokens (LSTs), and restaking tokens (LRTs), which, at current prices, amounts to approximately $1.11 billion, according to data from Dune Analytics.

Furthermore, the network holds over $45.9 million worth of stablecoins, primarily consisting of Ethena’s yield-bearing USDe token.

Zircuit Enables ETH Staking Derivatives

Zircuit initiated a points campaign on February 24, enabling users to stake ETH and Ether staking derivatives in exchange for Zircuit Points. 

These points not only offer potential eligibility for a future airdrop but also provide additional yield and points based on the deposited assets. 

Subsequently, on March 27, the project introduced its “Build to Earn” program, incentivizing developers to construct infrastructure, tools, and deploy decentralized applications (dApps) on Zircuit’s testnet, which was launched in November.

Extremely excited to announce that Ethena is joining @ZircuitL2's Build to Earn program to bring USDe to the ecosystem @ethena_labs will be natively integrating $USDe to Zircuit's Mainnet on day 1.

Build alongside us:

1. Use the invite code below
2. Submit your project/idea… https://t.co/l4A4DUDxz1

— Seraphim (@MacroMate8) March 27, 2024

Notably, Zircuit allows users to withdraw their pre-mainnet deposits at any time.

The network operates as a hybrid rollup, combining zero-knowledge proofs with optimistic infrastructure. 

Additionally, Zircuit is fully compatible with the Ethereum Virtual Machine (EVM), the core smart contract engine of Ethereum. 

This compatibility allows existing applications supporting EVM execution to seamlessly migrate their code onto the Zircuit network.

Zircuit’s ability to deliver faster transactions without triggering exorbitant fees is achieved through compression techniques. 

The project has received grants from the Ethereum Foundation to facilitate its research on rollup compression and scaling cryptography, emphasizing its commitment to advancing Ethereum’s scalability and efficiency.

Ethereum Layer 2 Blast Sees Massive Growth

Zircuit’s rapid ascent in the pre-mainnet phase is reminiscent of Blast, another prominent Layer 2 network. 

Blast, developed by the team behind Blur, a leading NFT marketplace, became the third-largest Layer 2 network with a total value locked (TVL) surpassing $2 billion upon its mainnet launch on February 29. 

Blast attracted substantial deposits, even before releasing any code, by offering points in addition to the native rewards from supported yield-bearing assets. 

Within a week of launching a one-way deposit contract in mid-November, Blast amassed over $500 million in assets.

Ethereum’s Layer 2 ecosystem has experienced substantial expansion over the past year and a half, with a total value locked (TVL) surpassing $36.7 billion. 

In October last year, 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 post Ethereum L2 Zircuit Surpasses $1 Billion in Pre-Mainnet Deposits in Just Six Weeks appeared first on Cryptonews.

With some community members expressing concerns over a potential “Soft Rug Pull,” the analysts stressed the importance of transparency in DAO operations, pointing out that the significant fund transfers “have raised many questions, particularly regarding the ultimate destination of the funds.”

Community Concerns Rise as AssangeDAO Faces Potential Fund Transfer Issues

Recent transactions from AssangeDAO have sparked intense debate within the crypto community.

Despite noble beginnings, large transfers raise questions. Delve deeper into the mystery with our latest analysis. Are we witnessing a strategic move or a cause for concern?

Explore…

— SlowMist (@SlowMist_Team) April 2, 2024

On March 10, 2024, a transfer of 100 ETH from AssangeDAO’s multisig address, 0x5DAEA26517788b1c0DDB0200c6Fa6d8248076143, to a new address sparked concerns within the community, especially among stakeholders of AssangeDAO. This development has raised fears of a potential “Soft Rug Pull,” prompting collaborative efforts by SlowMist and RescuETH Rescue to address these apprehensions in a joint article.

According to the article, AssangeDAO’s multisig address received 16,600 ETH in March 2022 and has transferred nearly 12,000 ETH over two years, leaving a balance of 5,018.59 ETH.

The address transferred 580.745 ETH to a contract address (0xeD2…131) on April 8, 2022. Further transfers include 34.99 ETH to Kraken and 829.64 ETH to another contract address (0x8a1…262) on May 9, 2022.

Between June 8, 2022, and February 16, 2024, it transferred 9,750 ETH across 65 transactions, mainly to (0x323339bc28028da8cd11b584747ee8ec873616b4). Notably, the last two transfers of 150 ETH each were directed to (0x2f988a4f26280a108a5761a889e63bd7f91d517e) starting January 23, 2024.

On March 6 and 10, 2024, it transferred a total of 200 ETH to (0x2f988a4f26280a108a5761a889e63bd7f91d517e).

The analysis reveals concentration in two addresses: (0x323339bc28028da8cd11b584747ee8ec873616b4) with a history of transfers to Kraken and (0x2f988a4f26280a108a5761a889e63bd7f91d517e) with recent large transfers.

Further scrutiny of these addresses shows a pattern of significant movement and redistribution of ETH, raising questions about the nature and purpose of these transactions. While AssangeDAO’s true intentions remain unclear, investors are urged to approach the organization with caution and conduct thorough due diligence.

As of now, AssangeDAO has not issued any public statements regarding these developments.

AssangeDAO Faces Scrutiny Over Fund Transfers Amid Assange’s Legal Battles

AssangeDAO, established in 2022, gained prominence due to its association with Julian Assange, the Australian activist renowned for founding WikiLeaks, a platform dedicated to disclosing classified information from anonymous sources.

Assange is wanted in the US on 18 charges, including 17 under the Espionage Act and one under the Computer Fraud and Abuse Act. He faces up to 175 years in prison after WikiLeaks published hundreds of thousands of leaked confidential military files and diplomatic documents related to the Afghanistan and Iraq wars.

Assange has been facing extradition following a 2021 UK High Court ruling, prompting supporters to establish AssangeDAO to champion his cause. The campaign amassed over 17,400 ETH in cryptocurrency donations, with the proceeds intended for Assange’s legal defense fund and further initiatives to raise awareness.

Inspired by the success of ConstitutionDAO, AssangeDAO initiated a fundraising campaign on JuiceBox to support Assange’s legal defense and raise awareness about free speech issues. The campaign bid on an NFT titled “Clock 1/1,” crafted by Assange and Pak, symbolizing his imprisonment period, with the proceeds going towards his legal defense and advocacy efforts.

Breaking! 16 Congressmembers have signed a letter urging Attorney General Merrick Garland to drop the dangerous and unprecedented charges against Julian Assange pic.twitter.com/5cBg9qpqip

— Assange Defense (@DefenseAssange) November 9, 2023

On November 8, 2023, AssangeDAO announced that 16 members of the US Congress signed a letter urging Attorney General Merrick Garland to drop the charges against Assange. However, on March 26, Assange was granted permission by a UK court to appeal his extradition to the United States.

The post Analysts Raise Suspicions Involving 100 ETH Transaction from AssangeDAO Address appeared first on Cryptonews.

According to data from Coin98 Analytics, Ethereum’s earnings in Q1 2024 tripled compared to the previous quarter, reaching an impressive $369 million. 

This marked a substantial 210% increase year-over-year from $119 million in Q1 2023.

Furthermore, the first quarter of 2024 saw Ethereum’s fees and revenues rise by 79% and 85% quarter-over-quarter, respectively. 

Transaction fees alone generated $1.2 billion in revenue for Ethereum during this period, representing a significant 155% increase compared to the first quarter of the previous year.

Ethereum Revenue in Q1 Reaches $1 Billion

Overall, Ethereum’s total revenue in Q1 2024 amounted to $1 billion, surging by an impressive 186% compared to the same period in 2023 when it reached $385 million.

Ethereum’s success in the first quarter of 2024 coincided with the cryptocurrency approaching all-time high prices in March, which resulted in a substantial increase in transaction costs on the network.

As Ethereum surpassed $3,000 in late February, users reported paying over $100 in ETH transaction fees during peak times. 

By March 1, the average gas fee for swap transactions reached approximately $79, with some users reporting fees as high as $400 in late February.

Despite the high transaction fees, Ethereum demonstrated significant growth in network usage throughout Q1 2024. 

Coin98 reported a notable increase in total Ethereum transactions, with a quarter-over-quarter surge of 8.4% to surpass 107 million transactions.

#Ethereum Q1 2024 Network Metrics

Alongside the growth of income statement metrics, network usage metrics also show remarkable trends:

– Over 107M transactions were conducted in Q1
– Almost 9.7M new addresses were created in Q1 pic.twitter.com/i7f97zbvlc

— Coin98 Analytics (@Coin98Analytics) April 3, 2024

Moreover, the total value locked in the Ethereum decentralized finance (DeFi) ecosystem rose by 86% quarter-over-quarter, reaching $55.9 billion.

Among Ethereum-based stablecoins, Tether maintained its position as the largest by market capitalization in Q1 2024, witnessing a 14% increase in market value since the previous quarter. 

Its main competitor, USDC, also experienced a quarter-over-quarter increase of 23% in the ERC-20 market value.

Ethereum Network Achieves One Million Validators

The Ethereum network has surpassed one million validators, with approximately 32 million Ether, worth around $114 billion, staked within the network.

As reported, data from the Dune Analytics dashboard, which tracks Ethereum staking progress, show that the validator count reached the one million mark on March 28. 

The 32 million ETH staked represents approximately 26% of the total supply, highlighting the substantial commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism.

Among the staking options available, about 30% of the ETH is staked through Lido, an Ethereum staking pool that allows users with smaller amounts of ETH to pool their assets and participate in the staking process.

Last week, crypto investment firm Bitwise submitted an application to the SEC to launch a spot Ethereum ETF.

The move positions Bitwise as one of many contenders in the race to introduce the first Ethereum spot ETF, following the successful launch of Bitcoin spot ETFs earlier this year.

Bitwise’s introduction into the Ethereum spot ETF competition aligns with the growing interest from traditional financial firms to offer such products.

In recent months, industry giants such as BlackRock, Grayscale, and VanEck have also filed proposals with the SEC to launch their own Ethereum spot ETFs. 

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