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The Ethereum Foundation has executed another significant sale of Ether (ETH). This move has sparked renewed anxiety among investors. Some of them are actually in panic. On September 23, the Foundation offloaded 200 ETH. On-chain data reveals two separate transactions of 100 ETH each. This sale follows a pattern of liquidation. Just three days prior, the Foundation sold 300 ETH for $763,000 in DAI. The latest sale netted approximately $528,000 in DAI. Spot on Chain reports accelerated liquidation throughout September. The Foundation has sold 1,150 ETH for about $2.8 million this month. Total sales for 2024 now stand at $10 million, with 3,566 ETH offloaded. The Foundation's current portfolio is valued at $726.7 million. Of this, $724.38 million is in ETH. Surprisingly, Ether's price has risen despite these sales. It currently trades at $2,664, up 4.07% in 24 hours and 17.09% over the week. While some investors started to raise questions about potential troubles in the Ethereum world, many analysts suggest the Foundation might be selling to reduce market volatility. They propose the conversion to DAI aims to maintain stable value amid fluctuations. However, this strategy has also raised transparency concerns. Critics question whether the Foundation is properly disclosing its financial activities. Josh Stark, a Foundation representative, announced an upcoming report on 2022 and 2023 spending. This move aims to address transparency worries. Meanwhile, Ethereum faces continued outflows. CoinShares data shows weekly outflows of $28.5 million. This trend persists even after the Federal Reserve's recent 50 basis point rate cut. Monthly outflows for Ethereum have reached $145.7 million. This contrasts sharply with Bitcoin's inflows of $284 million weekly and $76 million monthly. These figures suggest institutional caution towards Ethereum. This sentiment prevails despite macroeconomic conditions typically favoring riskier assets. Coinglass data shows increased activity in Ethereum futures. Open interest rose 0.69% to $12.09 billion. Derivatives volume surged 77.12% to $28.37 billion. This growth in trading interest raises questions about Ethereum's trajectory: while some traders prepare for market movements, ongoing outflows indicate investor distrust. The Ethereum Foundation's actions and market trends paint a complex picture. Transparency and market confidence remain key concerns in this evolving situation.

Cryptocurrency analyst Benjamin Cowen believes Ethereum is nearing its cycle bottom against Bitcoin. He shared this view in a recent video update to his YouTube audience. Cowen argues that all alternative cryptocurrencies will eventually reach their lowest point relative to Bitcoin. He suggests Ethereum is close to this milestone. However, he notes that Bitcoin's market dominance is still rising. This metric measures Bitcoin's market capitalization against that of all other cryptocurrencies. "I still think that Bitcoin dominance is in an uptrend," Cowen states. He predicts it could reach approximately 60%. Currently, Bitcoin's dominance stands at 57.64%, according to TradingView data. This ongoing trend implies the ETH/BTC pair may experience further decline. Cowen acknowledges this possibility in his analysis. Despite this, he proposes that Ethereum could bottom out against Bitcoin before other alternative cryptocurrencies. This scenario challenges the common assumption that all cryptocurrencies bottom simultaneously. "There does exist a scenario where ETH/BTC bottoms before the collective altcoin market bottoms against Bitcoin," Cowen explains. He emphasizes that different assets may reach their lowest points against Bitcoin at varying times. Cowen believes Ethereum is currently in its "final stages of capitulation" against Bitcoin. While uncertain about the exact low point, Cowen expresses confidence in a relatively soon bottom for ETH/BTC. He outlines a worst-case scenario involving a brief upward movement followed by a lower low in December.

Eclipse Labs is set to launch its mainnet in October. The project combines elements from Ethereum, Solana, and Celestia blockchains and aims to address scalability issues in the Web3 space. Vijay Chetty, CEO of Eclipse Labs, confirmed the timeline. "Public mainnet will be launching toward the end of October," he stated. The project is currently in the developer mainnet phase, he added. Eclipse utilizes the Solana Virtual Machine for transaction execution. It operates as an Ethereum layer 2 solution. The project also incorporates Celestia's data storage capabilities. The team's goal is to bring "Web2 scale to Web3". They believe this can be achieved by combining the strengths of multiple blockchains. Eclipse aims to avoid the perceived weaknesses of its component blockchains. Chetty pointed to Solana's decentralization issues and Ethereum's slow base layer transactions. These factors, he suggested, have limited both networks' widespread adoption. The project faces significant competition in the Ethereum layer 2 market. Arbitrum One, Base, and OP Mainnet are currently the largest players. They hold $13.7 billion, $6.5 billion, and $6 billion in total value locked, respectively. To gain market share, Eclipse plans to integrate existing Solana applications. These include decentralized exchanges Mango and Orca. The lending platform Solend is also slated for integration. Some of these applications will be rebranded for the Eclipse ecosystem. This strategy aims to leverage existing user bases and functionality. Eclipse's approach to data storage sets it apart from some competitors. Many layer 2 solutions store data off-chain due to cost concerns, but Eclipse plans to use Celestia for on-chain data storage. The launch of Eclipse represents a new development in blockchain interoperability. Its success could influence future approaches to scaling and cross-chain integration in the cryptocurrency sector.

Ethereum, the second-largest cryptocurrency, has faced significant challenges in 2024. Its performance has stagnated. This is in stark contrast to its peers: Bitcoin has surged 38%. Solana's sol has risen 31%. Bitwise, a prominent asset manager, addressed this issue in a recent report. They suggest ether's fortunes may soon change. The report was released on Tuesday. Several factors have contributed to ether's struggles. These include concerns about the upcoming U.S. presidential election. Rising competition from other blockchains, particularly Solana, has also played a role. Challenged tokenomics and mixed reactions to U.S. spot ETFs have further compounded the issue. Despite these hurdles, Ethereum's dominance in key areas remains unchallenged. It hosts the majority of stablecoins, over 60% of all DeFi assets are locked on its blockchain. For example, the popular prediction market Polymarket also settles on Ethereum. Matt Hougan, Bitwise's chief investment officer, drew a notable comparison. "Ethereum has the most active developers, the most active users, and a market cap that is 5X bigger than its closest competitor," he wrote. "It's like the Microsoft of blockchains." Hougan elaborated on this analogy. He noted that while newer technologies often capture attention, established players maintain their significance. "Everyone wants to talk about newer companies and their game-changing tech such as Google, Slack and Zoom," he explained. "But Microsoft is still larger than all of them put together." The report emphasizes that Ethereum's current challenges are not "existential". This suggests a potential shift in market sentiment. Bitwise believes a reevaluation may occur as the U.S. election approaches. Ether's recent performance has created an interesting market dynamic. Bitwise sees potential in this situation. "It looks like a potential contrarian bet through the end of the year," the report stated. This assessment comes at a critical time for the cryptocurrency market. Investors are closely watching ether's movements, many are evaluating its long-term prospects against short-term headwinds. Ethereum's continued dominance in key metrics remains a strong argument for its resilience. Its vast developer community and user base provide a solid foundation. These factors may prove crucial in overcoming current market hesitations.

Coinbase, the top US crypto exchange, has rolled out Coinbase Wrapped Bitcoin (cbBTC). It's a 1:1 Bitcoin-backed token on Ethereum. The move has set the crypto world abuzz. cbBTC aims to bridge Bitcoin with decentralized finance (DeFi). It's now live on Ethereum and Base blockchains. Users can access popular DeFi apps like Aave and Curve Finance. Coinbase's blog post explains the perks. "cbBTC removes a key point of friction," it states. Users can now provide Bitcoin as liquidity or use it as collateral in DeFi. The conversion process seems straightforward. When users send BTC from Coinbase to Base or Ethereum, it automatically becomes cbBTC. The reverse happens when cbBTC lands in Coinbase accounts. But not everyone's thrilled. Justin Sun, Tron's founder, is leading the pushback. He called it a "dark day for BTC" on Twitter. Sun's beef? He claims cbBTC lacks proof of reserve and audits. Sun didn't stop there. He warned that a single US subpoena could freeze all associated Bitcoin. "Essentially, it's just, 'Trust me,'" he mocked. The criticism isn't coming out of thin air. Recent drama around Wrapped Bitcoin (WBTC) has made folks wary. WBTC's custodian, BitGo, recently partnered with a Sun-affiliated company. It raised eyebrows about centralization. Amid the fuss, other players are jumping in. Investment firm 21shares announced its own wrapped Bitcoin, 21BTC. It's getting crowded out there. Some industry experts are chiming in. Fireblocks' VP, Arik Galansky, told Decrypt that WBTC hasn't kept pace with tech evolution. He thinks the market needs better alternatives. Vijay Pravin Maharajan from bitsCrunch pointed out the risks. He's worried about centralization and smart contract vulnerabilities. It's not all sunshine and rainbows in the wrapped Bitcoin world. Coinbase isn't taking the criticism lying down. They told Decrypt they're keeping tight control of the keys. No lending or funny business with the backing Bitcoin, they promise. Hours after launch, Coinbase had to issue a warning. Scammers were already trying to impersonate cbBTC. It's a jungle out there, folks. The debate rages on. Is cbBTC a game-changer or a ticking time bomb? Only time will tell. But one thing's for sure – the crypto world is never dull.