Ethereum
Why is Ethereum rising (May 2024) – Forbes Advisor INDIA
In March 2024, Ethereum surpassed the $4,051 level, reaching highs since January 2022. This increase in Ethereum’s value comes amid speculation about the potential launch of an exchange-traded fund (ETF ) Ethereum following the introduction of Bitcoin ETFs. The US approval of Ethereum ETFs is recent: the Department of Justice has issued an indictment with notable implications for ETH classification. As a result, there will be a reduction in livelihoods and ETH will be classified as a security.
The United States Securities and Exchange Commission (SEC) has successfully approved Ether ETFs. The House has passed a Crypto Market Structure bill to regulate the industry, marking the first time comprehensive crypto legislation has been voted on in the plenary. On Wednesday, the House voted 279-136 to pass the Republican Financial Innovation and Technology for the 21st Century Act (FIT21). Seventy-one Democrats supported the bill, including former House Speaker Nancy Pelosi of California.
As of May 29, 2024, Ethereum was trading at $3,831, up 2.17% over the past seven days and down 0.25% over the past 24 hours, just after the SEC approval. Additionally, the Dencun upgrade launched on Ethereum in March 2024; the upgrade has yet to give ETH the boost the market expected.
Following the successful implementation of the Shanghai and Capella Hard Fork, Ethereum, the world’s second largest cryptocurrency, saw a significant positive jump during a two-day rally. During this rally, prices rose from around $1,900 to $2,100 in April 2023.
The largest altcoin’s Shappella rally brings hope to the entire cryptocurrency sector, which suffered significant losses during the bearish period of 2022. Ethereum saw a nearly 65% rally in 2023. This trend The upward trend was expected to continue with the Dencun upgrade, but we didn’t see that happening.
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Ethereum hits almost $4,000
The second largest cryptocurrency in the world, Ethereum, experienced a strong upward movement during the year 2023 which attracted many investors and speculators to the crypto market. Much like Bitcoin, ETH has recently rallied. As of May 29, 2024, it was hovering around $3,833.
Source: Coinmarketcap
Rajagopal Menon, vice president of WazirX, says the potential launch of an Ethereum ETF would signal that regulators and institutional investors are accepting other major crypto assets beyond Bitcoin. This represents a major policy turning point in the trajectory of crypto acceptance and adoption. Year-long resistance against crypto from regulators like SEC Chairman Gary Gensler appears to be waning as the tide turns in an election year and Democrats try to position themselves as pro-crypto to take on Trump .
He further adds that there are valid concerns around an Ethereum ETF, given the platform’s transition to proof-of-stake consensus. If ETFs can accumulate a large amount of ETH, they could hand over outsized network control to large institutions such as asset managers and custodians. This centralization of block validation raises questions about censorship resistance compared to Bitcoin, which is proof of work.
Overall, the potential approval of an Ethereum spot ETF in the US would be an incredibly bullish development for the crypto markets in India and globally. This would strengthen the sustainability of crypto assets beyond just Bitcoin, in the eyes of regulators and institutional capital.
Parth Chaturvedi, Head of Investments at CoinSwitch Ventures, said: “Last week saw many positive developments for the US crypto industry, including the approval of the FIT21 bill by the House. However, the maximum impact on market prices came from speculation that ETH Spot ETFs are closer to approval than previously thought. In particular, the SEC contacted all applicants (including BlackRock, Fidelity, and Vaneck) to make some last-minute changes before their approval deadline passed.
He added: “The spot ETF will allow easy exposure to ETH prices without the hassle associated with holding the underlying asset. »
Cancun-Deneb Upgrade (Dencun): 2024
After the Shella upgrade last year, Ethereum is expected to get another upgrade this year. The 2024 upgrade, which introduced danksharding and proto-danksharding, launched in March.
Danksharding divides the ETH blockchain into smaller, more manageable parts called “blobs”. Implementing the upgrade will increase network capacity and reduce transaction fees.
Proto-Danksharding, also known as EIP-4844, is a feature offered in the upgrade that builds on the notion of danksharding. By creating additional space to store data within the ETH network, it expands the capacity of danksharding. The implementation of proto-danksharding has critical implications for Layer 2 rollups. This upgrade will make more space available for data blobs to lead to a more transparent and cost-effective experience for ETH users . It is planned to reduce connected gas emissions using layer 2 solutions.
ETH continues to attract attention with its innovative approach to the highly anticipated Dencun upgrade. The upgrade includes a series of upgrades for the Cancun execution layer and the Deneb consensus layer of the ETH network. These simultaneously drive remarkable changes to improve security, scalability, and usability.
With the Dencun upgrade, ETH aims to provide a more robust infrastructure for dApps and smart contracts, encouraging innovation and driving the adoption of blockchain technology. This radical change represents the next phase of Ethereum’s evolution and promises improvements to address existing challenges and unlock new possibilities.
Major Developments in Ethereum
Will Ethereum reach $4,500?
As of May 29, 2024, Ethereum was trading at an all-time high of $3,832 with a market capitalization of $460.35 billion. Since the “Shappella” upgrade, ETH has maintained enormous growth levels. It increased by 101.78% last year.
Ethereum market performance is currently at 26% at the time of writing, with significant institutional demand, increased inflows into BTC ETFs and the US SEC approving spot ETH ETFs.
The price prediction for 2024 ranges from $4,500 to $4,700. The forecast range for February is $2,650, mainly due to investor enthusiasm around the Ethereum Spot ETF. Ethereum has shown strong performance this month.
The future outlook for ETH price suggests a promising trajectory in 2024, with dynamic changes, potential bullish momentum, and pivotal moments anticipated throughout the year. Time will tell whether the upgrade will be a success or a failure for Ethereum.
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Legacy
Over 1 Million Investors Trust Mudrex with Their Crypto Investments
Security
Mudrex is the Indian government. recognized platform with 100% insured deposits stored in crypto wallets
Costs
Benefit from zero crypto deposit fees and the best fee rates in the industry.
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Listed on Deloitte Fast 50 Index, Best Global Foreign Exchange Broker 2022 – ForexExpo Dubai October 2022 and more
Best investment offer
Trade over 26,000 assets with no minimum deposit
Customer service
Dedicated 24/7 support and easy sign-up
Please invest carefully, your capital is at risk
Conclusion
Most cryptocurrencies, including BTC and ETH, are seeing positive trading trends due to investor interest in Spot Bitcoin ETFs and the current approval of Spot ETH ETFs.
Anticipation played a central role in Ethereum reaching one of its highest positions over the last year. Dencun is already launched on Ethereum, and the chances of the US SEC approving ETH spot ETFs will likely maintain the bullish momentum this year and in the future.