Latest Ethereum News and Insights | Yellow.com

Ethereum, the second-largest cryptocurrency by market cap, might be in for a rough ride, even despite the fact the bull market is over. At least, that's what one crypto strategist reckons. Justin Bennett, a well-known figure in the crypto world, has raised eyebrows with his latest prediction. He's not pulling any punches. Bennett thinks ETH isn't going to do well, and as such isn't a good investment. "To say this is an important moment for ETH is a massive understatement," Bennett told his 111,100 followers on X. How's so? Well, the analyst believes Ethereum is testing a crucial support level. It's part of what traders call an ascending channel pattern. Bennett's outlook isn't pretty. He expects Ethereum to eventually break below this support level. His base case? A drop to $700. That's a whopping 69% decrease from current prices. As of writing, Ethereum is trading at $2,278. The potential downturn has got the crypto community on edge. Bennett isn't buying into the hype around potential Fed rate cuts either. He thinks any resulting rallies could be a trap. "Markets are forward-looking. Why would they wait for rate cuts to rally?" he questioned. It's worth noting that Ethereum's price history has been a rollercoaster. The cryptocurrency hit an all-time high of $4,878 in November 2021, and that was the moment of the greatest optimism. Bitcoin was worth $69,000 at the moment, and many analysts predicted ETH would skyrocket at least to a $10,000 mark. That never happened. As for the crashes, Ethereum has had a fair share of those. For instance, ETH dropped as low as to around $80 in December 2018. Yes, that was a long time ago. But more recently, Ethereum weathered the crypto winter of 2022, when its price fell below $1,000. It's since recovered, reaching $2,000 and staying above this mark for a little while, but Bennett's forecast suggests more turbulence ahead. Crashing below $1,000 now - in a world where ETH ETFs are already legal - might have unpredictable and easily the most uncomfortable consequences for the second largest crypto. Of course, Ethereum is not only about the price and trading. Like it or not, to many users Ethereum remains a cornerstone of the crypto ecosystem. Why? Well, the ETH token is traded, yes, but the core feature of the Ethereum blockchain goes far beyond that. It's the go-to platform for decentralized applications and smart contracts. Most popular and widey used stablecoins and most successful meme coins - they all exist thanks to Ethereum blockchain. Even if ETH prices plummet, it poses no immediate threat to Ethereum ecosystem. At least, it would be fair to say that meme coins on Solana blockchain is clearly a bigger threat to Ethereum's dominance. Whether Bennett's prediction comes true remains to be seen. But one thing's for sure – the crypto market never has a dull moment.

Mercuryo, a crypto payments firm, has unveiled a Mastercard debit card for European crypto holders. The virtual card, named Spend, lets users convert crypto to fiat for purchases. It's available across the EU. Users can buy stuff at over 90 million Mastercard merchants. Polish fintech Quicko issues the card. Mercuryo aims to make Spend widely accepted. "Spend's launch is a big deal for us," says Petr Kozyakov, Mercuryo's co-founder and CEO. He's pretty chuffed about it. "It's a step towards making crypto more mainstream." The card works with a non-custodial wallet. Users keep their crypto keys. It supports 40 cryptocurrencies, including Ethereum and Solana. No word about Bitcoin, though. Mercuryo claims instant conversion from crypto to fiat. No waiting around like with banks. For now, it's just for the European Economic Area. But they're planning to roll it out globally soon. The card has a €40,000 monthly limit. There's a €1.60 issuance fee and a €1 monthly maintenance fee. Users gotta follow anti-money laundering rules. Mercuryo isn't the first to launch a crypto-to-fiat card. MetaMask did it in August with Mastercard. Bybit's been offering one since last year. It's a crowded field. But Mercuryo's betting on its competitive fees and security to stand out. Time will tell if they've got what it takes to make a splash in the crypto payments world.

Ethereum's layer-1 network has taken a beating. Revenue has plummeted by 99% since March 2024. The Dencun upgrade is the culprit. Layer-2 solutions are thriving. They're attracting more users and offering lower fees. Token Terminal data confirms this trend. The Dencun upgrade went live on March 13. It optimized layer-2 transactions. Days before, Ethereum's layer-1 revenue topped $35 million. Then fees began to nosedive. By August's end, revenue hit rock bottom at $600,000. This shift reveals changing user behavior in the Ethereum ecosystem. "Blobs" are the game-changer. They allow layer-2 solutions to process transactions with less reliance on layer-1. The result? Dirt-cheap transactions. Layer-1 revenue has fallen off a cliff. But it's not all doom and gloom. Layer-2 projects are popping up like mushrooms. There are now 74 solutions duking it out. It's a race to the bottom for transaction fees. Users are laughing all the way to the bank. They're saving a bundle on faster transactions. Some validators reckon the fee focus is off-base. Ryan Berckmans, a big-shot validator, argues layer-2 success makes Ethereum more accessible. He quips, "Fees are a result of Ethereum being useful, not the goal in itself." The community's split on this one. Some worry about long-term consequences. The reduced ETH burn rate has flipped the supply from deflationary to inflationary. This raises eyebrows about ETH's future value. Some reckon blob fee tweaks might be needed to rebalance the scales. Despite the hubbub, institutional interest is picking up. Coinbase, Circle, and even BlackRock are backing Ethereum. They're building infrastructure for the long haul. Ethereum fanboy Adriano Feria reckons this institutional support is the real deal. He says speculation might bring a flash in the pan, but it's the big players that'll drive real progress. Feria's bullish on layer-2 solutions. He sees them unlocking new possibilities and jazzing up the user experience. Giants like Coinbase's Base and Arbitrum are tapping into Ethereum's liquidity. They're proving layer-2 can coexist and thrive alongside layer-1. The layer-2 boom is hitting Ethereum's layer-1 revenue hard. But it's opening a new chapter for the network. The Dencun upgrade has reshaped the landscape, making transactions cheaper and more accessible. With institutional interest brewing and users flocking to layer-2 solutions, Ethereum might be on the cusp of its next evolution. It's a bumpy ride, but the destination could be worth it.

Vitalik Buterin, Ethereum's co-founder, has hit back at critics. They claim he "doesn't care" about decentralized finance (DeFi). The backlash erupted over the weekend. Kain Warwick, yield farming pioneer, sparked the debate. He appeared on a crypto talk show on August 23. Warwick voiced frustration with the Ethereum Foundation's (EF) recognition of DeFi. "One of the most critical things that he's gotten wrong over the last five years is the importance of DeFi," Warwick said. He loves Vitalik but disagrees with his DeFi stance. Warwick claimed Buterin's language equates to "stop doing DeFi". This has irked the DeFi community. "Stop discouraging the main use case of the chain," he stressed. The criticism spread on social media. One user argued that Ethereum's value and DeFi are inseparable. Buterin broke his silence. He responded to a post questioning his support for USDC over DeFi. In his defense, Buterin clarified his views. He wants useful and sustainable applications. They should uphold permissionlessness and decentralization. "I think DEXes are great, and I use them every week," Buterin stated. He praised decentralized stablecoins and prediction markets. USDC? Less great, but practical. Buterin's not keen on unsustainable projects. He felt "no excitement" for the 2021 liquidity farming craze. It relied on temporary token issuances. The debate coincided with a large Ethereum transfer. The EF moved about 35,000 ETH ($96 million) to Kraken. It's just "treasury management", they say. This DeFi drama shows Ethereum's growing pains. Balancing innovation and sustainability isn't easy.

Sony, the Japanese tech behemoth, is launching its own blockchain. It's a big deal. Because big companies are capable of making big difference, thus insuring the increasing rate of the global crypto adoption. The company behind the Walkman is now eyeing Web3. Sony Block Solutions Labs, a joint venture with Singapore's Startale Labs, announced the move on Friday. Their new baby? It's called Soneium. It's a layer-2 network built on Ethereum. Soneium will use Optimism's OP Stack. This tech allows for cheaper transactions on Ethereum. The project signals a possible renewed interest from big companies in blockchain tech for consumers. Soneium's testnet is set to launch in the coming days. It'll join the ranks of other OP Stack users like Coinbase's "Base" and Worldcoin's "World Chain". Sota Watanabe, CEO of Startale Labs and director at Sony Block Solutions Labs, is spearheading the project. He's no newbie to the crypto world. Watanabe told CoinDesk: "The first year is all about onboarding Web3 people." He's keeping it real about the tech's current limitations. But Watanabe's got big plans. "Within two years, we're going to onboard Sony products," he said. Think Sony Bank, Sony Music, Sony Pictures – the works. And it doesn't stop there. "In three years, we would like to onboard not only Sony, but also all enterprises and all general dapps on top of it," Watanabe added. But he also mentioned that this is a general timeline. "We're going to try to onboard enterprises as many as possible from the first year,” Watanabe added. Startale Labs is going all-in on Soneium. They're moving away from their previous project, Astar zkEVM. “Astar zkEVM will be integrating its assets and underlying infrastructure with Soneium,” Watanabe explains. Sony's diving into the deep end of crypto. Will they sink or swim? Only time will tell.