Ethereum Updates: 2024 ETH Price Potential & RISKS!!

What the heck is going on with ethereum BTC and a few altcoins have been Rallying like crazy but it looks like Eth has been struggling to catch up this Is despite ethereum having pending spot ETF applications of its own meanwhile We've seen no shortage of ethereum fud From institutional investors and some of These investors have been pedling fomo About ethereum competitors like salana That's why today we're going to bring You up to speed on what ethereum has Been up to analyze eth's price action And tell you why the long overdue Rotation into eth is about to Begin I'll start by saying that nothing In this video is financial advice it's Purely educational content that's meant To assist you on your crypto Quest I'll Also note that almost every member of The coin Bureau team holds eth in their Personal portfolio but we promise to be A objective in today's analysis I'll Also say that if you're looking for a Place to trade eth then you need to Check out the coin Bureau deals page we Have limited time offers there for Trading fee discounts of up to 60% and Sign up bonuses of almost $40,000 all linked to Below now it's been more than 5 months Since our last ethereum update and boy Has a lot happened since then shortly After that video went live the judge in

The sec's case against Ripple ruled that Secondary sales of xrp were not Securities nor is xrp itself a security This caused eth and other layer ones to Rally for context this is significant Because the SEC seems to believe that Every cryptocurrency except BTC is an Unregistered Security even stable coins This was confirmed later in July when it Was revealed that the SEC had asked Coinbase to delist everything except BTC Prior to suing the crypto exchange now The fact that Ripple won its case Against the SEC means that it's probably Impossible for the regulator to go after Any other layer ones especially ethereum That's because decentralized cryptos are Not Securities and eth is arguably more Decentral ized an xrp never mind that The SEC itself once said ethereum was Decentralized now another thing that Happened in July was dydx launching the Test net for its Dex on its own Cosmos Based blockchain for reference this is Significant because dydx was originally Built on ethereum dydx leaving Ethereum's ecosystem was therefore seen As a sign that ethereum was falling out Of favor just a a couple of weeks later However cell a layer 1 announced its Plans to become a layer 2 on ethereum Logically this was seen as a sign that No ethereum is not falling out of favor And since that time we've seen a major

Exchange namely coinbase launch its Layer Two on ethereum and its related Tech unfortunately though things started Getting ugly for ethereum in August some Of you might recall that there was a big Scare in ethereum's defi ecosystem due To curve Finance basically curve Finance Founder Michael egov had taken out a Massive loan against his CRV token Holdings in various defi protocols as CV's price began to fall many began to Speculate about the possibility of Contagion in eth's defi ecosystem that's Because those defi protocols probably Wouldn't have the capacity to liquidate Michael's CRV loan to make borrowers Whole the result could have been these Defi protocols going bust fortunately However Michael managed to sell some of His CRV over the counter to defi Wales In order to pay back some of his onchain Loans as of September Michael had paid Off his loans on arve but apparently Still has outstanding loans on other Defi protocols thankfully CRV defi Liquidation risks are a long way off on A more positive note sharum the Layer Two for the Sheba enu mcoin also Launched in August sharum has around $1 Million in total value locked at the Time of shooting and has dozens of dog Themed defi protocols note that this is One of many layer 2s that have launched In recent months another bullish

Development in August was the news that Visa had started testing payments on Ethereum using the ERC 4337 standard AKA Smart accounts it created a special Smart contract called pay Master which Makes it possible for Visa card holders To pay for ethereum gas fees without Needing to hold eth and by the way if You're enjoying the video so far be sure To smash that like button to give it a Boost now eth's bullish sentiment Continued in September when Vanek and Arc invest became the first asset Managers to apply with the SEC for spot Ethereum ETFs naturally they were Inspired by the fact that the SEC is on The brink of approving a spot Bitcoin ETF and probably can't argue that eth is A security one week later onchain Analytics firms noticed that the number Of active Wallets on ethereum had hit Its second highest level on record more Than 1 million wallets were active on The 13th of September leading to Speculation that eth was about to Rally Again the same phenomenon occurred in Late 2022 but then came the fud first Ethereum's new test net dubbed Hol Sky Reportedly failed to launch due to a Technical error then JP Morgan released A report saying that ethereum's Transition from proof of work to proof Of stake had been quote disappointing

Due to the lack of expected adoption This fud was highlighted by the fact That eth's Supply had turned Inflationary due to the lack of Transactions then to add insult to Injury ethereum Creator vitalic beran Was spotted sending eth to exchanges Again presumably to sell note though That vitalic claims he hasn't sold for Personal gain since 2018 now the factual fund continued in October with the listing of ethereum Futures ETFs being a flop all nine ETFs Saw a combined trading volume of $2 Million on their first day to put things Into perspective the Bitcoin Futures ETFs experienced $1 billion of trading On their first day in December 2021 not surprisingly crypto analytics Firm k33 research subsequently found That institutional investors were Continuing to rotate out of eth and into BTC of course JP Morgan once again took The opportunity to chime in by saying That ethereum has become centralized Because of staking particularly liquid Staking at the same time the ethereum Foundation was spotted swapping millions Of dollars of eth for usdc on Unis Swap This came as a surprise given that it Appears to have been the first time that The foundation had sold eth on aex note That it's believed that this usdc was For a developer Grant of some kind now

If all that wasn't bearish enough Ethereum's validator que also came close To being cleared this sent a signal that Not many people are interested in Staking eth something confirmed by Coinbase shortly afterwards The Exchange Noted that this was likely due to the Decline in eth staking yield remember That for later anyways at the end of October crypto custody firm fireblocks Announced that it had found and fixed a Vulnerability in ERC 4337 this announcement came shortly After Circle had announced the launch of A new feature which leveraged ERC 4337 recall that this is the same Tech That Visa was Testing a few days later however Goldman Sachs decided it was about time for some Ethereum fomo the mega Bank announced That it was excited about ethereum's Denune upgrade and as it would improve Ethereum's layer 2 scalability and turn The layer one into the settlement layer It was destined to be more about that Later the ethereum fomo continued in November with BlackRock announcing that It had filed for a spot ethereum ETF the Asset manager argued that the SEC had no Right to reject the spot ethereum ETF Application given that it had approved The ethereum Futures ETFs Fidelity Joined in shortly after and as a cherry On top consensus announced that it was

Working to decentralize infura with the Help of big tech companies now for those Unfamiliar infura is required for users To interact with the ethereum blockchain Many have argued that it's been a point Of centralization on ethereum well not Anymore now unfortunately this news Seems to have been overshadowed by the News that the adoption of ERC 4337 had been Lackluster Bitcoin also flipped ethereum By transaction fees due to ordinals nfts And BRC 20s two technologies that are Leading to speculation about whether Bitcoin could compete with ethereum you Can learn more about ordinals nfts and BRC 20s using the link in the Description I digress now other Headlines that overshadowed ethereum's Bullish developments related to blast a Controversial layer to that's currently In development Blast has been Controversial for many reasons but Mainly because it's been accumulating Large amounts of eth related Assets in Advance of its actual launch at the time Of shooting Blast has more than $800 Million in total value locked most of Which is eth being staked through Lio Finance obviously this has led to Concerns that any issues on blast could Cause issues for stth which could in Turn cause issues in defi much like the CRV concerns from back in August and on

That note earlier this month an early Ethereum whale was spotted sending $90 Million of eth to Kraken presumably to Sell onchain analysts noted that it's Just one of many early ethereum whales Which have been offloading eth lately And chances are you've seen a few Headlines about this speaking of which Coindesk also published an article this Month about how ethereum's onchain Censorship is increasing according to Ethereum Foundation researcher Tony Vatter 72% of the blocks on ethereum are Complying with ofac sanctions a more Than 3x increase since November 20122 note that this problem is not Exclusive to ethereum bitcoin's onchain Censorship has been increasing too we'll Be doing a video about that soon so make Sure you subscribe and ping that notific Ification Bell so you don't miss it Anywh who as luck would have it the news About ethereum's increasing onchain Censorship was overshadowed by the news That starnet a layer two and layer zero A cross-chain protocol would both be Airdropping tokens to their users this Was likely a response to all the Airdrops coming out of sana's ecosystem Fortunately or perhaps unfortunately the News about Stark net and layer zero also Overshadowed the news that Unis swap had Expanded to a Bitcoin side chain and That another Bitcoin side chain would

Soon be launching this just underscores The possibility that Bitcoin could soon Compete more with ethereum now this all Ties into eth's price action which has Actually been pretty impressive Objectively speaking since July eth's Price is up around 50% which isn't as Much as some cryptos but is more than Most cryptos and much more than most Traditional assets this is easy to Forget when you're only focused on Crypto even so there's no denying that Eth has been underperforming relative to Its peir and this can be clearly seen on The eth BTC chart which measures eth's Value against BTC as you can see eth has Been in a downtrend against BTC since August and it doesn't look like this Trend will reverse anytime soon in fact If you zoom out to the monthly it looks Like eth is about to paint a massive Bare flag against BTC this would take the eth BTC pair Down to levels not seen since 2021 now it's extremely important to Note though that a decline in the eth BTC pair does not necessarily mean that Eth will go down in fat terms it could Also mean that eth will not pump as much In fat terms of BTC and this is exactly What we've seen since August from our Perspective Black Rock filing for the Spot Bitcoin ETF over the summer is What's been causing eth to underperform

BTC if so this could continue until the Bitcoin ETF is approved after that the Focus would likely turn to eth as it's Next in line to get an ETF the approval of a spot ethereum ETF Seems guaranteed and that is for one Simple reason grayscale some of you Might remember the news that grayscale Had won its case against the SEC and the SEC didn't appeal to refresh your memory The SEC had rejected Grace scale's Application to convert its Bitcoin trust Into a spot Bitcoin ETF the judge ruled That the SEC didn't give a good enough Reason for this rejection in case you Missed the news grayscale recently filed For its ethereum trust to be converted Into an ETF 2 given that the SEC Lo lost Its case against grayscale over the Bitcoin trust conversion it looks like There's a very low chance it will be Able to reject the ethereum trust Conversion otherwise the SEC would find Itself in court again where grayscale Would likely win again in short Therefore an eth spot ETF will be Approved this is why it's so odd that Eth has been underperforming other Altcoins not just BTC interestingly the Answer might have something to do with Interest rates as reported by coindesk Eth's Price appears to have an inverse Correlation to interest rates Particularly long-term interest rates in

The United States this makes sense given That the main reason why institutional Investors love eth is because they can Stake it to earn a yield passive income If you will as I mentioned earlier eth's Staking yield has been on the decline Because of how many people are staking Eth eth staking yields are currently Around 4% well in case you missed the Memo the interest rate on the 10-year Treasury is currently over 4% and was Recently as high as 5% lo and behold the Sentiment around eth seems to have hit Its lowest point when this 5% Target was Hit and it's been improving as the 10-year yield has come down assuming That this has in fact been one of the Core contributors to eth's Underperformance then eth should start To outper form once eth staking yields Are higher than the yields on US Government debt it looks like this will Only happen once the FED starts cutting Interest rates which may not be until Early next year the Silver Lining though Is that eth's fundamentals are still Looking strong despite all the headlines To the contrary eth's Supply is Deflationary the number of transactions On ethereum is starting to rise and the Total value locked on ethereum's layer 2s continues to hit new all-time highs Signaling lots of adoption this means That it's not a question of if but when

Eth will catch up to BTC this would Translate to a gain of 10 to 20% in the Short term it's possible that all that Eth needs to catch up to BTC is a Powerful Catalyst as it so happens Ethereum has one big milestone coming up That could do the trick this relates to Ethereum's Road map although ethereum Has an official road map consisting of Multiple categories the merge The Surge The Scourge etc for the purposes of this Video there's only one Milestone you Need to know about and that's the Aforementioned denune upgrade denune Will increase ethereum scalability at The layer 2 level by introducing EIP 4844 to the blockchain EIP 4844 is Colloquially referred to as Proto Dan Sharding and it makes it possible to Create special Blobs of of data on the Ethereum blockchain these blobs are Leveraged by layer twos to increase Their efficiency as I mentioned earlier Institutions like Goldman Sachs are Excited about denune because it means That ethereum layer 2s will be fast and Cheap enough to become payment rails Ethereum itself will be the settlement Layer for these payment rails which will Increase eth's value as their adoption Grows now denune was originally supposed To be released this year but was delayed Back in October according to a recent Tweet by ethereum developer Tim Boo the

Denune upgrade will occur in January Considering how significant Institutional investors consider it to Be this should put eth back in the Spotlight in other words ethereum has Its own upcoming Catalyst which should Cause eth to Rally along with the blue Chip cryptos in its ecosystem namely the Layer 2os this means we won't have to Wait until after the spot Bitcoin ETF is Approved or the FED starts cutting rates For E to start catching up up to BTC and Others never mind the fact that the spot Bitcoin ETF will probably be approved in January however this assumes that the Denune upgrade will happen without any Hiccups you'll recall that there were Technical issues with ethereum's new Test net and vulnerabilities were Discovered in EIP 4337 these were just two of many hiccups That ethereum has experienced since the Start of the year when you include the Bugs and issues on large defi protocols Like Lio finance and Ave as well as the Potential technical issues from the Ongoing decentralization of infura it Seems that the risk of a hiccup during The denune upgrade is higher than normal If it happens it would be very bad for Eth this brings me to the challenges That ethereum faces the first challenge Is regulation this might sound strange Given that eth seems to be safe from

Regulatory scrutiny at least from the Likes of the SEC even if this is the Case the same cannot be said said for All the activities around eth that take Place on ethereum for starters there are Regulatory concerns around eth staking Back in August bitstamp announced that It would no longer allow us users to Stake eth and would also be delisting Seven altcoins that the SEC noted as Being Securities what this suggests is That eth staking itself is still under Regulatory scrutiny note that the SEC Sued Kraken for offering crypto staking Services earlier this year and it's not Just the us either according to coindesk There are rising concerns about the Regulations around eth staking in the EU And the UK the authors note that Switzerland only allows eth staking Through banks whereas Singapore recently Restricted staking services for retail Users altogether if you've been keeping Up with our coverage of crypto Regulations however you'll know that the Even bigger issues relate to regulations Around Defi and stable coins both crypto Niches have seen intense regulatory Scrutiny and this is a problem given That ethereum is used primarily for Defi And stable coins if you watched our Recent update about salana you'll also Know that some of its defi protocols Have already started restricting us

Users from accessing their front ends The same is true for some defi protocols On ethereum if this becomes the norm Then ethereum and other smart contract Cryptos could suffer This pertains to ethereum's Second Challenge and that's competition now as Amazing as it is that some crypto Projects have chosen to migrate to Ethereum's ecosystem there seems to be An equal number that are leaving or at Least considering it like make a dow Wanting to create its own salana based Blockchain the more concerning headlines However relate to institutions like Visa Not long after Visa tested out ERC 4337 On ethereum they decided to give salana A go as well based on what Visa's Executive said at sana's breakpoint Conference they appear to see salana as A more viable payment rail than ethereum And it's not just payments either it Appears that ethereum competitors are Starting to eat away at ethereum's Market share for things like nfts with Avalanche apparently becoming the number One destination for blockchain games now To be clear ethereum and its layer 2s Still dominate these niches but this Could paradoxically become a problem in Itself if everyone is using ethereum Layer 2os instead of etherium itself Then there won't be the same amount of Eth burning and buying that's simply

Because the fees on these layer twos are Lower and they only publish transactions To the ethereum blockchain Periodically now at this stage ethereum Effectively competing with its own layer Twos is only theoretical in practice However we appear to have evidence Ence Of this happening already recall that The activity on ethereum's layer 2s is Hitting all-time highs across various Metrics like tvl if this activity was All on ethereum eth would probably be a Lot higher now ethereum's third Challenge follows on from the second and That's centralization the elephant in The room here is Lio Finance which Accounts for almost a third of all the Eth being staked this is an issue that Vitalic brought to light in October and It's something that we noted in our Video about Lio liquid staking protocols And staking pools could essentially take Control of ethereum via Dow governance By selecting the validators they want And rejecting the ones they don't want The good news is that this risk is Mostly theoretical for now the bad news Is that this centralization is still a Big issue for eth as I mentioned earlier Hundreds of millions of dollars of eth Is being sted through Lio Finance via That blast Layer Two in turn hundreds of Millions of dollars of stth is being Used as collateral in defi protocols an

Issue with blast or another protocol Which hold lots of stth could do damage To eth and don't even get me started on The fact that most of ethereum's layer Twos have a single sequencer node making Them all extremely centralized watch our Video about bass for more info on that Now with all that said these challenges Are in fact shortterm eventually reason Able crypto regulations will be passed Around staking and defi soon ethereum Will undergo the denune upgrade which Will make every Layer Two on ethereum Practically as fast as salana creating a Crypto Hydra of sorts the centralization Challenge will be harder to Address Given the incentives involved in staking But it is one that vitalic and the Gang Are working diligently to solve let's Just hope they solve it soon because Once that spot ethereum ETF is is Approved the real centralization Challenges will Begin and that's all for today's video Folks so if you found it informative be Sure to smash that like button to let us Know if you want to stay informed be Sure to subscribe to the channel and Ping that notification Bell if you want To help inform others take a second to Share this video with them and if you're Accumulating or trading eth then check Out the coin Bureau deals page it's got Trading fee discounts of up to 60% and

Bonuses of up to $40,000 on the best Crypto exchanges as well as the biggest Discounts on the best hardware wallets The link of course will be down in the Description thank you all so much for Watching and I'll see you in the next One this is Guy signing [Music] Off