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James Mullarney Analyzes Why Institutions Favor Solana Over Ethereum in 2023 – CryptoGlobe

James Mullarney, the host of the very popular YouTube channel InvestAnswers, recently spotlighted the increasing institutional focus on Solana (SOL), a blockchain network that rivals Ethereum (ETH). Mullarney underscored that Solana possesses multiple attributes that could drive its price higher.

According to a report by The Daily Hodl, Mullarney showcased a chart that compared Solana and Ethereum across 19 distinct metrics, such as block time, average transaction fees, and transactions per second (TPS). According to this chart, Solana has the upper hand in several categories, notably outclassing Ethereum in aspects like block time and TPS.

While Ethereum is generally viewed as a more stable and well-established investment, Mullarney observed that Solana has attracted more institutional investment in 2023. He mentioned that although large-scale investors typically lean towards Ethereum due to its longstanding credibility, this year has witnessed a pivot towards Solana.

Discussing the market capitalizations of both cryptocurrencies, Mullarney noted that Solanas market cap stands at $8.2 billion, ranking it as the 10th largest digital asset. In contrast, Ethereum boasts a market cap of $196 billion, solidifying its position as the second-largest digital asset. He questioned whether Ethereums significantly larger market cap truly represents a 20-fold advantage in value over Solana.

Mullarney also emphasized that Solanas smaller market cap offers it a greater scope for price appreciation compared to Ethereum.

In his final remarks, Mullarney indicated that Solana presents a compelling investment opportunity at its current pricing, although he did advise caution due to inherent risks. He disclosed that his Solana portfolio is roughly one-third the size of his Ethereum holdings but expects it to grow faster.

The InvestAnswers host said:

This is the magic question though. When you break it all down is Ethereum 20 times better than Solana? And the answer in my opinion is no. But there is risk with Solana, therefore you allocate accordingly. My Solana bag is about a third the size of my ETH bag but it will grow and I think itll grow faster But that little skinny green sliver on the right is the market cap of Solana versus the market cap of ETH. And the ETH market cap is 20 times higher, which is stunning. And I look as an investor for relative value. Solana is a screaming buy at this price.

Featured Image ViaMidjourney

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Bitcoin and Ethereum Price Latest ETF Noise Gives BTC/USD and ETH/USD a Bid for Now – DailyFX

Bitcoin (BTC), Ethereum (ETH) Prices, Charts, and Analysis:

The Bitcoin rumor mill was back in full flow yesterday after various tweets and stories suggested that the BlackRock spot Bitcoin ETF had already been agreed and would be announced shortly. Due to BlackRocks market heft and reach, the announcement in mid-June that the fund manager had submitted a proposal for a BTC ETF caused the market to push sharply higher. Since then the price of Bitcoin has moved lower, erasing all BlackRock gains, as markets realized that it may be many months until the SEC gives a ruling, one way or another.

Also this week, ARK Invest and 21Shares put in a proposal for the first spot Ethereum ETF, causing interest in the second-largest cryptocurrency to grow. ARKs proposal would allow a wider range of investors to participate in an exchange-traded fund that tracks the underlying cash Ethereum market.

As with all cryptocurrency tweets and stories, market rumors, especially in a quiet market, should be taken with a pinch of salt and not used as a reason to trade.

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Despite yesterdays move higher, Bitcoin remains trapped in a short-term range between $25.2k and $26.6k with the only move outside this range over the recent weeks caused by the BlackRock announcement. Bitcoin is neither overbought nor oversold, according to the CCI indicator, while volatility remains low, especially by historical standards. The 50- and 200-day simple moving averages continue to weigh on the price of Bitcoin, and unless there is some confirmed ETF news, one way or another, Bitcoin may remain trapped in the above range in the short term.

Bitcoin (BTC/USD) Daily Price Chart September 8, 2023

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Ethereum is also stuck in a range, aside from a handful of spike lows, and is looking likely to test support again. Again, all three moving averages are weighing on ETH with the 20-day sma in particular curtailing any possibility of a further move higher. Sideways trade with a downside bias looks likely for Ethereum in the coming days.

Ethereum (ETH/USD) Daily Price Chart September 8, 2023

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What is your view on Bitcoin and Ethereum bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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Crypto whale loses $24M in staked Ethereum to phishing attack – Cointelegraph

A cryptocurrency whale has fallen victim to a massive phishing attack, losing millions of dollars in staked Ether (ETH) on the liquid staking provider Rocket Pool.

The investor lost their entire address balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) on Sept. 6, the cryptocurrency security firm PeckShield reported.

The hack was completed in just two transactions, with9,579 stETH stolen in one and4,851 rETHin another.At the time of the attack, the amount stolen was worth $15.5 million in stETH and $8.5 million in rETH, a staggering $24 million combined.

According to PeckShield, the phisher subsequently swapped the assets for 13,785 ETHand 1.64 million Dai (DAI).

A significant portion of the DAI stash has already been transferred into the fully automatic cryptocurrency exchange FixedFloat, PeckShield reported.

SlowMists crypto tracking team, MistTrack, reported that most of the remaining stolen funds were transferred to three addresses.

Related: MetaMask scammers take over government websites to target crypto investors

According to anti-scam source Scam Sniffer, the victim enabled token approvals to the scammer by signing Increase Allowance transactions.

Allowance or access permissions are a feature of ERC-20 tokens that enable a third party to have the right to spend some tokens that belong to a different owner, using smart contracts. Some cryptocurrency observers havewarned against risks associated with approving ERC-20 allowances, noting that anonymous developers could deploy malicious smart contracts to scam users.

The news comes shortly after at least five Ethereum liquid staking providers Rocket Pool, StakeWise, Stader Labs and Diva Staking imposed or started working to impose a self-limit rule in which they promise not to own more than 22% of the Ethereum staking market.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: Asia Express: Thailands national airdrop, Delio users screwed, Vietnam top crypto country

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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: A break down seems likely as BTC momentum wanes – FXStreet

Bitcoin (BTC) price appears to be coilin up for the next move, after a longstanding consolidation. Ethereum (ETH) and Ripple (XRP) have mimicked the same outlook, forecasting a possible directional bias in the days to come.

Also Read: Bitcoin Weekly Forecast: BTC could revisit $21,000 as sell signals multiply ahead of US CPI.

Bitcoin (BTC) price is moving west, consolidating within a narrow range after breaking below a crucial support level during the August 17 crash. With weekends known to be rather lulled, the odds of a move north are slim unless large holders act.

The $24,995 support level is a make-or-break for Bitcoin price. A decisive break below would send BTC to the psychological $24,000 and mark a bearish shift in trend. In the dire case, seller momentum could see the king of crypto hit $21,915, levels last seen around mid-March.

Both the Moving Average Convergence Divergence (MACD) indicator and the RSI recently gave buy signals. The RSI rose out of oversold territory at the end of August and the MACD line crossed above its signal line in negative territory at the same time. Despite these signals only reflecting a brief dead-cat bounce in price that quickly fell back at the start of September, there is still a possibility of a recovery evolving.

BTC/USDT 1-day chart

A resurgence by the bulls could provide such an impetus for Bitcoin price, fueling a recovery to the upside. Such a move could send BTC above the 200-, 50-, and eventually the 100-day Exponential Moving Average (EMA) at $27,066, $27,414, and $27,763 levels before ultimately restoring above the support offered by the ascending trendline at $29,692.

In a highly ambitious case, Bitcoin price could foray into the zone above the psychological $30,000 before tagging $31,518. While the possibility for a northbound move remains bleak in the near term, it would constitute a 20% climb above current levels.

Also Read: Bitcoin all-time high in 2025? BTC price idea reveals 'bull run launch

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an improved version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoins interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Ethereum (ETH) price is testing the $1,621 support level, which is shaky ground, considering momentum is fading.

A drop below this buyer congestion level with a lot of uncollected liquidity hanging beneath could see ETH test the $1,529 support level.

ETH/USDT 1-day chart

Conversely, revitalized momentum among bulls could see Ethereum price pivot at $1,621 before forging north to the 50-day EMA at $1,734. The ascension could extend, possibly reaching the area where the 200- and 100-day EMAs appear to converge at $1,762 and $1,773, respectively.

With the right momentum, inspired by a strong move by Bitcoin, the price could see Ethereum price hit $1,841, an area last tested on August 15.

Also Read: Ethereum whales accumulate ETH as researchers explore scaling beyond EIP-4844.

Ripple (XRP) price has broken out from a descending parallel channel after the exhaustion blow-off move lower on August 17. These are both bullish signs that the downtrend has finished. Further confirmation would be provided should the remittance token record a daily candlestick close above the 200-day EMA at $0.5233.

XRP/USDT 1-day chart

If sidelined investors or late buyers come in, the increased buying momentum could see Ripple price tag, or in a highly bullish case, overcome the resistance presented by the confluence resistance area between the 100-day and 50-day EMAs at $0.5547 and $0.5580 levels respectively.

Overcoming these hurdles could clear the way for Ripple price to reach the psychological $0.7000 level. This would indicate a 15% drop.

From a bearish perspective, there is still a risk Ripple price could slip back below the upper boundary of the descending channel and potentially extend to the July 13 lows around $0.4600. This would represent an 8% fall. In a dire case, Ripple price could extend to the midline of the bearish technical formation at $0.4191.

Also Read: XRPprice likely to slump as pro-XRPattorney Deaton analyzes the Howey memo and Hinman speech

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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: A break down seems likely as BTC momentum wanes - FXStreet

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Crypto Price Today: Bitcoin regains $2,600; Ethereum nears $1,650; Altcoins trade higher – Business Today

Bitcoin was struggling to hold some gains on Friday. All eyes are set on India's G-20 presidency, where crypto regulations are likely to be discussed. Just banning cryptocurrency won't eliminate its risks, a joint policy roadmap published by global standard setters Thursday said.Ethereum is currently attempting a rebound after failing to break the $1,675 resistance level.After recording short-term gains last month, the asset has declined 9.2% since mid-August.The price action has been registering short line candles in the daily chart, indicating that ETH will continue moving sideways in medium term.Image: Chart-ETHThe asset is currently trading below its 20-day moving average of $1,670 which acts as an immediate resistance level.Its RSI reading is currently at 40, slightly in oversold territory.If ETH is unable to break through the $1,700 barrier this week, the price may consolidate around $1,650 levels for a while.Major Levels:Support: $1,625,$1,585Resistance: $1,670, $1,700, $1,735(Views and recommendations given in this section are the analysts' own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)

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Crypto Price Today: Bitcoin regains $2,600; Ethereum nears $1,650; Altcoins trade higher - Business Today

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Bitcoin Spark: The New Age Cryptocurrency Outshining Bitcoin and … – Blockzeit

Bitcoin and Ethereum are the most significant crypto projects in market capitalization. Bitcoin takes the first position, while Ethereum follows behind alongside other altcoins. The two platforms have provided the ecosystem with massive utility and functionalities that have pioneered the development and sustaining of new and improved projects like Bitcoin Spark.

The downside of these two networks is that they have high transaction costs. Bitcoin has a low transaction speed since its technology existed before 2009 and has limited scalability due to a lack of smart contract deployment features.

Bitcoin mining is a validation process on the Bitcoin network that verifies transactions and approves the addition of new blocks recorded on the blockchain network. The activity is carried out by miners who compete to solve complex mathematical arithmetics using sophisticated high-end computers explicitly specialized for mining. Miners are rewarded in BTC, the native token of the network. The process is unavailable to retailers as it has a massive entry barrier associated with high electricity costs and expensive mining equipment.

Ethereum staking refers to Ethereum 2.0 participation, completed by locking up ETH as collateral to enhance the Ethereum networks security and efficiency. The activity is conducted by speakers who are also called validators. Validators are required to provide a minimum of 32 ETH as collateral in exchange for staking rights. The validators validate transactions and add new blocks to the ecosystem while maintaining the efficiency and security of the network.

Ethereum and Bitcoin are great projects that have contributed immensely to the development of the cryptosphere. However, these projects have old-generation blockchain networks with massive transaction fees and limited scalability. For these reasons, a new Bitcoin and Ethereum alternative called Bitcoin Spark is being developed. Bitcoin Spark is an advanced crypto-oriented network that looks to provide solutions to the inhibiting factors of Bitcoin and Ethereum networks.

The project intends to capitalize on the advantages of proof-of-work in Bitcoin and proof-of-stake in Ethereum to develop a more advanced network that processes large numbers of transactions at higher speeds. The platforms consensus mechanism is proof-of-process, which alloys the two validation methods alongside advanced special features such as a reward-standardizing automated algorithm. This blueprint will manage the distribution of rewards among stakers and miners.

The networks proof-of-work validation method entails solving less complex mathematical challenges to complete transactions. The process will be so simple that miners will begin mining in the network using standard handheld electronic devices, unlike it is the case with the Bitcoin network, which requires high-end computer hardware. The aim of the team to introduce a mining application for standard devices is to make BTCS mining more decentralized than mining BTC.

The applications will have well-branded, easy-to-use interphases available on most operating systems, including Mac OS, iOS, Android, Linux, and Windows. The software will run in the background of the devices, allowing users to proceed with the normal functions. Additionally, the software will have advanced technological features that will adjust for the processing power required and account for device limitations such as overheating and battery usage.

Website: https://bitcoinspark.org/

Buy BTCS: https://network.bitcoinspark.org/register

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Ethereum volatility falls below Bitcoin as volume lags – CoinJournal

Key Takeaways

Ask anybody to describe the cryptocurrency markets, and there is a strong chance that the word volatile will be mentioned.

The nascent asset class is well known for aggressive price moves. However, it has not lived up to that reputation this year. Despite Bitcoin having increased 55% since the new year, the rise has been characterised by a slow and steady climb rather than sudden jumps as we have seen so often in the past.

A glance at its volatility, plotted on an annualised basis over a rolling 30-day window, shows this below. While the volatility has risen in the last two weeks amid news of the positive ruling on Grayscales case against the SEC, as well as other ETF-driven narratives, it is still lagging far below what we have come to expect from Bitcoin.

To be clear, realised volatility in the mid-30s is still extremely elevated when compared to other asset classes, so nobody is arguing that Bitcoin is now stable.Yet when compared to what we have seen over the years from Bitcoin, it is certainly unusual.

Perhaps the best way to sum up the placid nature of the crypto market is to compare the volatility of Bitcoin and Ethereum. Bitcoin tends to lead the crypto market, with altcoins trading like levered bets on the worlds largest crypto. While Ethereum may be too large at this point to qualify as an altcoin, it has nonetheless tended to display higher volatility than its bigger cousin. This gap has come down in 2023, however, as the below chart shows.

In fact, Ethereums realised volatility is actually currently belowthat of Bitcoin. The next chart zooms in the 2023 period, showing this flippening.

It is the fourth time this year that Ethereum has printed volatility below Bitcoin. The previous three times saw a swift regression, so it may happen again. Either way, the gap has been oscillating close to zero since the start of the year.

For many, Bitcoin and crypto as a whole must shed its habit of violent volatility. Should the asset achieve its goals of becoming a reputable store of value or a digital equivalent of gold, its value cannot fluctuate as much as it has for much of its existence.

Hence, it may be tempting to paint the dropoff in volatility in a positive light. However, that may be misguided. In truth, volatility and volume move hand in hand. And crypto volume has collapsed in the last two years.

August exchange volume came in at $423 billion, less than half of what it was at this time last year.

The $423 billion of volume last month was the lowest of any month since October 2020, before Bitcoin exploded into mainstream consciousness with a relentless run-up past its then-all-time high of $20,000.

The next chart shows exchange volume going back over the last two years, with volumes around $2 trillion at this time in 2021 5X last months figure.

While the earlier points regarding Ethereum trading with lower volatility may be dismissed by some as an argument that Ethereum is maturing and separating itself from the rest of the non-Bitcoin market, the suppressed volume is undoubtedly concerning for the market as a whole. It is also part of the reason why volatility is so low.

It feels inevitable that volatility and volume will pick back up. This is where ETFs, macro clarity, sentiment pickup and an overall brightening of the picture will help. And more likely than not, these will all occur, it is just a matter of when. With April 2024 now only seven months away, there is also Bitcoins fourth halving coming down the tracks although it remains to be seen what effect that may have.

But for the moment, volatility and volume are both trickling along, far below what we had come to expect from this corner of the financial markets. remains to be seen

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Bitcoin (BTC) & Ethereum (ETH) Struggle, but VC Spectra’s (SPCT) 220% Rally Shocks All! | – Bitcoinist

While Bitcoin (BTC) and Ethereum (ETH) grapple with market turbulence, VC Spectra (SPCT) has astounded the crypto sphere with its remarkable 220% rally. The innovative decentralized hedge fund is rewriting the rules of blockchain investments and quickly earning the title of the best crypto to buy.

Will VC Spectras (SPCT) outstanding performance continue as Bitcoin (BTC) and Ethereum (ETH) face challenges? Lets find out.

>>BUY SPCT TOKENS NOW<<

The U.S. Securities and Exchange Commission (SEC) postponed its verdict on the pending Bitcoin ETF applications, exacerbating the downward pressure on Bitcoins (BTC) price. The market has already witnessed a Bitcoin crash after the SEC delayed approving Bitcoin (BTC) ETFs.

By September 5, Bitcoin (BTC) had fallen to a value of $25,699, representing a significant decline from its high of $27,867 on August 31. Prior to this, an increased interest rate also triggered a Bitcoin crash.

Market analysts are voicing concerns that this time, the Bitcoin crash could persist, potentially pushing Bitcoins (BTC) price down to the $24,000 level unless the ETFs are approved early on.

Moreover, experts are issuing cautious predictions for Bitcoins (BTC) short-term future. If Bitcoins (BTC) price cannot stop its decline before the $24,500 level, theres a looming possibility that BTC might experience a more significant decline to $20,000.

Grayscale has solidified its position as a significant player in the Ethereum (ETH) ecosystem, amassing a substantial Ethereum holdings reserve of nearly 3 billion ETH. Their Ethereum Trust empowers investors to tap into the potential of Ethereum (ETH) without the need to directly acquire, secure, or manage the digital asset themselves.

While experts gave a positive Ethereum prediction, the market suffered heavy declines as BTC crashed on August 17. This forced analysts to give another Ethereum prediction on September 1.

Ethereum (ETH) has recently declined, experiencing a 6.3% drop over the past week, with its price decreasing from $1,741 to $1,630. Furthermore, on-chain data indicates a 4% reduction in Ethereums (ETH) user activity following the release of this report on September 1, 2023.

The new Ethereum prediction, however, offers some optimism and suggests that Ethereums price will rise to levels above $1,800. Analysts attribute this positive outlook to Grayscale Ethereum Trusts substantial involvement in Ethereums (ETH) network, indicating growth after the current bearish market stabilizes.

VC Spectra (SPCT) is making waves in the cryptocurrency world as it outshines many top altcoins and reports significant gains. VC Spectras (SPCT) innovative decentralized hedge fund has been a standout performer, surpassing the growth of several well-established digital assets.

VC Spectra (SPCT) is redefining blockchain investments, offering unique advantages like exclusive access to pre-ICOs, diversified portfolios, and rewarding incentives, making it an attractive cryptocurrency for beginners.

VC Spectras (SPCT) impressive journey began with a private presale that raised a substantial $2.4 million.

Subsequent public presale stages delivered remarkable returns, with Stage 1 witnessing a notable 37.5% increase from its initial price of $0.008 to $0.011. Stage 2 stole the spotlight, skyrocketing by an astonishing 212.5%, reaching $0.025 earlier than anticipated.

Currently, in Stage 3, VC Spectra (SPCT) is at $0.025, offering a promising 32% return on investment before progressing to Stage 4, where the price is projected to rise to $0.033.

Excitement is building as VC Spectra (SPCT) gears up for its public platform launch after the presale, with an expected price of $0.08, reflecting an impressive 220% increase from its current level.

To learn more about VC Spectra (SPCT), visit:

Buy Presale: https://invest.vcspectra.io/login

Website: https://vcspectra.io

Telegram: https://t.me/VCSpectra

Twitter: https://twitter.com/spectravcfund

Disclaimer:This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.

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Bitcoin (BTC) & Ethereum (ETH) Struggle, but VC Spectra's (SPCT) 220% Rally Shocks All! | - Bitcoinist

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Ethereum (ETH) to Enter New Era With Binance’s Latest Integration – U.Today

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Ethereum is set to enter a new era of adoption as top crypto exchange Binance has announced a new ETH integration.

Binance announced in an official blog post that it has completed the integration of Ethereum (ETH) on the zkSync Era network. According to the crypto exchange, deposits and withdrawals for Ethereum (ETH) tokens are now available on the zkSync Era network.

Binance shared the details of the Ethereum (ETH) smart contract address on the zkSync Era network while sharing the time frame for this to be completed.

Deposits of Ethereum (ETH) on the zkSync Era network are expected to take 24 hours to be credited to users' Binance accounts due to zkSync Era finality mechanics.

zkSync is a Layer 2 Ethereum network that leverages the zero-knowledge protocol and roll-up technology to speed up transaction processing time and save costs while maintaining security standards on the main network.

The zkSync Era mainnet was launched in March and has welcomed several projects. Per DefiLlama data, zkSync Era has hit $122.38 million in DeFi total value locked (TVL).

Following new 19b-4 filings by the Chicago Board Options Exchange, which will "ultimately start the clock" for an SEC decision, the race for the first Ethereum exchange-traded fund in the U.S. has officially begun.

card

On Sept. 6, the CBOE submitted two 19b-4 applications to the U.S. Securities and Exchange Commission asking for listing of the investment products ARK 21Shares Ethereum ETF and VanEck Ethereum ETF on the CBOE's BZX Exchange.

VanEck's S-1 submission dates back to July 2021, while ARK Invest and 21Shares teamed up to submit an S-1 to the SEC on Sept. 6.

Bloomberg analyst James Seyffart referred to this, stating that the Spot Ethereum ETF Race is officially on. Although he says it might be too early to predict, he estimates the final deadline for these applications to be around May 23, 2024.

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Ethereum thought leaders are ‘coping’ with Lido dominance, says … – Blockworks

In a spicy take on Lidos liquid staking dominance, David Rodriguez says Ethereum thought leaders arent being realistic about the problem and are in fact, coping.

The Blockworks Research analyst doesnt hold back in his critique of some of the communitys suggestions to address the situation.

Rodriguez explains that some leaders are suggesting Lido should take one for the team, voluntarily limiting itself to 22% staking dominance well below its current position at around 32% of the market.

Competing liquid staking providers are valiantly promising that they would, of course, do the same, Rodriguez says, if only they could first grow more than ten times in size to even face the same dilemma.

On the 0xResearch podcast (Spotify/Apple), Rodriguez argues that the suggested tactics to limit Lidos dominance are short-sighted.

The overall argument, Rodriguez says, is that if Lido has more than 33% market dominance, that hurts Ethereums credible neutrality. Lido essentially becomes a governance wrapper over Ethereum, which specifically was never meant to have on-chain governance.

If Ethereum, as a community, decides that Lido is too powerful [and] decides to enshrine liquid staking into the protocol, or decides to straight-up fork Lido, he says, that harms the property rights of developers and users of Ethereum.

Looking back at earlier days of liquid staking on Ethereum, Rodriguez says, we easily could be in a world today where centralized exchanges are the majority of the stakers of Ethereum.

The reason centralized exchanges are not the monopoly powers over Ethereum, Rodriguez says, is specifically because of Lido. He adds that Lido is implementing a staking router to help diversify staking to smaller validators.

Rodriguez says Lido is implementing dual-governance in the future, whereby staked ETH holders will have veto rights in the event of any malicious act by Lido governance.

Lido is demonstrating through these actions, he says, that it is trying to become incentive-aligned with Ethereum long-term. In fact, no protocol other than Uniswap, perhaps, is more aligned with Ethereum, argues Rodriguez.

Were going to ultimately have a winner-take-most or a winner-take-all scenario in an open source world, he says, where network and liquidity effects really drive brand and overall market dominance in the future.

The cause for concern is over-blown, he says.

Self-limiting to a maximum market dominance of 22% loses nuance, says Blockworks research analyst, Ryan West. Solving the problem requires addressing the mechanism design from a core protocols perspective, West says.

If the only solution you have to this is asking and begging the protocols themselves to self-limit, he says, its a problem with the underlying design.

West explains that limiting staking dominance to 22% or less would theoretically make it difficult to take over the network as more than three entities would have to collude to exceed 66% of the entire stake. I believe thats the reasoning behind it, he says, but at the same time, when you look at the design of these LST protocols, its not like its one entity staking this ETH.

There are decentralized solutions and Lido is obviously working towards those, he says.

You should look less so at the number of ETH staked by these operators and instead look at the underlying design, West says. As long as its aligned with Ethereum, then I think thats good enough for me.

Get the days top crypto news and insights delivered to your email every evening.Subscribe to Blockworks free newsletternow.

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