30s Summary

Ether’s (ETH) price fluctuated around $2,700 and whether it will reach the $3,000 mark likely depends on lowering transaction fees, increased usage by businesses and better staking rewards. Elsewhere, Solana overtook Ethereum in decentralized application transaction volumes, raising questions about institutional interest in ETH. However, Ethereum still dominates in total value locked. Withdrawals from ETH staking are a concern, attributed to unchanging transaction fees despite high on-chain DApp volume. A proposed Ethereum Improvement Proposal and the Pectra upgrade in 2025 could provide solutions. Ethereum faces further challenges from US regulatory practices and an increasing supply.

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So, Ether’s (ETH) price jumped up to $2,700 on Oct. 30, the highest it’s been in ten days. But there was a drop on Oct. 31, and it fell back down to $2,550. That’s pretty much the same as what happened with Bitcoin (BTC), which fell 4% from a high of $73,575 on Oct. 29.

Now, everyone’s wondering what will get Ether’s value back up to the $3,000 mark. Most likely, it’s going to be a combo of lowering transaction fees, more businesses starting to use it, and better perks for folks who stake their ETH.

Joe Consorti, a Bitcoin lover from Theya Inc, says that Ethereum exchange-traded funds (ETFs) in the US haven’t really caught investor interest, while Bitcoin ETFs have raked in $3.3 billion in just a week.

Something to think about though – Ether’s inability to crack $2,700 can’t just be chalked up to low institutional interest. According to the latest info, Solana has overtaken Ethereum in decentralized application (DApp) transaction volumes.

Sure, some folks argue that Solana’s network rides a lot on memecoin trading that blew up in October. On the other hand, Ethereum keeps getting solid demand from reliable DeFi apps like Balancer, Curve, Pendle, and Ether.fi.

When you take layer-2 volumes into account, Ethereum continues to rule. This is even more obvious when you look at total value locked (TVL), where Ethereum locks in $48.8 billion while Solana only has $6.27 billion.

Ether’s transaction fees, however, haven’t budged despite a strong $116 billion in on-chain DApp volume over a month. In contrast, Solana and Tron boast much higher reward rates for staking. This has led to a withdrawal of 180,000 ETH from staking.

Ethereum developers are working on fixing this with the upcoming Ethereum Improvement Proposal EIP-7742. This will put temporary data layer costs and max values into play.

What’s even more exciting is Ethereum’s planned upgrade, Pectra, set for early 2025. It aims to blow up the maximum block size to 2.7 megabytes from the current 1 megabyte. The big debate now revolves around getting a balance between cheap transactions and rewarding ETH staking.

For Ether to reach $3,000, it’s going to need serious institutional adoption. This has been held back by the US Securities and Exchange Commission’s strict policy, which has turned down Ethereum ETFs that use staking strategies.

Meanwhile, Bitcoin’s firm monetary policy has been a hit with big pro investors. Ethereum now faces some challenges with an increasing supply and too much layer-2 activity. While it’s good for operations, it might make security hard to keep up. So, a lasting ETH price rally might depend on big changes in the network structure. Just remember, all this info is for general knowledge – don’t take it as legal or investment advice.

Source: Cointelegraph