Bitcoin transaction fees have stayed below since Jun. 9, 2024, and have fallen under in the last five days. Even with this decrease in fees, over 200,000 unconfirmed transactions have persisted in the backlog, as the queue has not come close to clearing since October 2023. Bitcoin’s Fee Market Struggles to Match Network’s […]
Bitcoin News
$2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period
In recent weeks, Binance and Robinhood observed a modest influx of approximately 1,302 BTC or million in bitcoin, with Robinhood acquiring the majority of these assets. Conversely, Coinbase experienced a noticeable decrease in its bitcoin reserves, witnessing an outflow of 40,406 BTC valued at .7 billion in the past two months. Coinbase, Binance, and […]
Bitcoin News
Ethereum Issuance Reduction Proposal Prompts Fierce Crypto Community Criticism
Discussions about adjusting Ethereum’s issuance curve due to staking concentration and other factors are taking place on social media, with some developers in favor and some against this change. A recent article by Mike Neuder, an Ethereum Foundation researcher, highlights that Ethereum issuance should “preserve the viability and proportion of solo stakers.” Ethereum Issuance Curve […]
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Ethereum Dencun Upgrade Launch Boosts ETH Price, Eyes 90% Fee Reduction
Ethereum (ETH) has made significant strides in its 2024 roadmap with the successful launch of the Dencun upgrade on the final Holesky testnet.
This is seen as a crucial step towards deploying the upgrade on the mainnet, signaling Ethereum’s progress in improving transaction efficiency, and scalability and reducing transaction fees by up to 90%. As a result, ETH has surged 2.9% in the last 24 hours, breaking its previous downtrend.
Ethereum Dencun Upgrade
The Dencun upgrade was first activated on the Sepolia testnet in January 2024, following its deployment on the Goerli testnet. This upgrade aligns with Ethereum’s broader strategy to enhance scalability and reduce transaction costs for its users.
Introducing the concept of “proto-danksharding,” Dencun aims to decrease transaction costs for layer-2 blockchains and address scalability challenges, paving the way for the eventual implementation of “danksharding” for further benefits.
Once fully implemented, Dencun is expected to significantly increase Ethereum’s transaction processing capacity, potentially enabling the network to handle over 100,000 transactions per second. According to the network’s development team, this scalability enhancement is crucial for supporting the growing ecosystem of decentralized applications (dApps) and users on Ethereum.
Furthermore, Dencun will have notable technical improvements, such as the introduction of ‘blobs,’ which reduce the cost of rollups on the Ethereum mainnet by compressing transaction data off-chain.
By caching data needed for short-term transaction verification, blobs aim to minimize storage and processing requirements, further enhancing the network’s transactional capabilities.
Anticipation For ETH’s Market Impact
The successful implementation of the Dencun upgrade holds the potential for significant implications on ETH’s market value, driven by a combination of factors.
Firstly, the upgrade’s enhanced network capabilities, including boosted transaction processing capacity and reduced costs, are expected to attract more developers and users to the Ethereum ecosystem.
With improved scalability and lower transaction fees, Ethereum could become a more attractive platform for building dApps and conducting transactions. This increased utility and demand for Ethereum could have a positive impact on its market value as more participants seek to acquire ETH tokens.
The perceived reliability and forward momentum resulting from the successful implementation of Dencun may attract more investors to consider Ethereum as an investment opportunity. The increased interest and demand for ETH tokens driven by this positive sentiment can contribute to potential price appreciation.
Lastly, the anticipation of Dencun’s benefits and the reactions to its successful implementation may lead to short-term price volatility, with investors adjusting their positions based on their expectations of how the upgrade will impact Ethereum’s functionality and market position.
All of these developments could have a significant impact on ETH’s price trajectory and position the token in a long bullish trend, if this momentum continues to be capitalized on, the next barrier at ,450 could be easily surpassed, potentially sending ETH to new highs.
While the long-term implications remain to be seen, this is a positive development for ETH bulls as the network has lacked significant catalysts and has been involved in a significant price correction for the past 3 weeks.
With activations on the Sepolia and Goerli testnets already completed, the final testnet deployment, Holesky, was initially scheduled for February 7, 2024. However, it has now been rescheduled for March 2024.
Featured image from Shutterstock, chart from TradingView.com
Grayscale’s Bitcoin Trust Sees Reduction Slowdown as New ETFs Gain Ground With Over 160,000 BTC Acquired
In the most recent update, Grayscale’s Bitcoin Trust (GBTC) experienced a decrease of 4,461.36 bitcoin, valued at approximately 0.53 million, over the past day. Since Jan. 12, 2024, GBTC has observed a cumulative reduction of about 124,967.54 bitcoin, equivalent to an estimated .33 billion. Meanwhile, the nine recently launched spot bitcoin exchange-traded funds have collectively garnered an impressive total of 160,661.38 bitcoin.
GBTC Sheds Almost 125,000 Bitcoin While 9 Fresh ETFs Gather Over 160,000
Recent trends indicate a slowdown in the outflows from Grayscale’s Bitcoin Trust (GBTC), with each trading day experiencing a smaller decline over the last two sessions. As of Jan. 30, 2024, data revealed that GBTC’s holdings dipped below the 500,000 BTC mark, registering at 496,573.81 BTC. However, in the past 24 hours, the holdings have further decreased by 4,461.36 BTC, bringing the total down to 492,112.45 BTC, currently valued at approximately .43 billion.
The recent reductions in GBTC have been notable, yet they pale in comparison to the substantial drop of 20,803 bitcoin observed on Jan. 26. From Jan. 12 to Jan. 31, 2024, GBTC’s reserves have shrunk from 617,079.99 BTC to 492,112.45 BTC, marking a significant loss of 124,967.54 BTC, according to current metrics. In contrast, Blackrock’s IBIT has seen growth over the past day, increasing from 56,629 BTC to 63,488.22 BTC, an uptick of 6,859.22 BTC.
As highlighted in their Jan. 31, 2024, daily holdings report, Fidelity’s FBTC has witnessed a rise, moving from 47,238 BTC to 53,802.34 BTC. Meanwhile, Ark Invest’s ETF, ARKB, has expanded its holdings to 15,175 BTC, an increase of 385 BTC in the last 24 hours. Bitwise’s BITB has seen a notable jump, going from 13,576.10 to 14,039.54 BTC. According to the latest assets under management (AUM) data, the Invesco Galaxy ETF BTCO is currently holding 6,898 BTC.
In other developments, Vaneck’s HODL ETF now contains 2,941.99 BTC, and Valkyrie’s BRRR ETF has a total of 2,635.29 BTC. Franklin Templeton’s holdings have climbed from 1,363 BTC to a present total of 1,421 BTC. As of Jan. 31, Wisdomtree’s BTCW ETF is holding 260 BTC. Collectively, these nine newly introduced spot bitcoin ETFs have amassed a significant 160,661.38 BTC, valued at .88 billion at the current market rate. Although the combined accumulation of these nine new ETFs is impressive, GBTC’s fund remains notably larger, being 3.11 times more valuable than the aggregate of all nine.
What do you think about the nine new ETFs collecting more than 160,000 bitcoin? Share your thoughts and opinions about this subject in the comments section below.
$867 Million Erased — Grayscale’s GBTC Experiences Record 20,803 Bitcoin Reduction in 24 Hours
Recent data from Grayscale’s GBTC spot bitcoin exchange-traded fund reveals a significant reduction in its holdings, with 20,803.83 bitcoin, valued at 7.98 million, being withdrawn from the fund’s reserves. This substantial outflow, occurring over the past 24 hours, marks the most considerable decrease in GBTC’s reserves since it transformed into a publicly-listed ETF on Jan. 11, 2024.
Grayscale’s Latest GBTC Bitcoin Withdrawal Amounts to 7M, Remains Top ETF Holder
Grayscale’s GBTC holds a significant position with 502,712.60 BTC in its reserves, valued at approximately .10 billion. Still, this figure reflects a reduction of 20,803.83 BTC from its holdings on Friday morning, which then amounted to 523,516.43 BTC. Since Jan. 12, 2024, GBTC’s bitcoin holdings have decreased by 114,367.39 BTC, equivalent to .77 billion, based on the BTC exchange rates as of Jan. 27, 2024. The fund has also seen substantial trade activity, dominating the market on Friday with 9.74 million out of the .68 billion total trade volume across all ten spot bitcoin ETFs.
GBTC has led the market in all 11 trading sessions since the launch of the ten new spot bitcoin ETFs. Its highest trading volume was recorded on Jan. 11, reaching .29 billion, while its lowest was on Jan. 25, with a volume of 1.49 million. To date, these ten ETFs have accumulated a total trading volume of .36 billion, with GBTC’s transactions contributing .15 billion, accounting for 63.68% of the total since Jan. 11, 2024.
Despite competition from new entrants like Blackrock and Fidelity, Grayscale’s trust remains the largest bitcoin-holding fund. The Canadian Purpose Bitcoin ETF (BTCC) holds 33,062 BTC as of Jan. 27, and the ETC Group Physical Bitcoin fund (BTCE), traded on Germany’s Börse Frankfurt, holds 24,856 BTC as of Jan. 25. Even with the presence of these international ETFs and smaller U.S. counterparts like IBIT and FBTC, Grayscale’s trust still surpasses them all in size.
What do you think about the outflows Grayscale’s GBTC has seen since it was transformed into a publicly-listed spot bitcoin ETF? Let us know what you think about this subject in the comments section below.
Cambridge Study Unveils Ethereum’s Environmental Impact Post-Merge, Highlighting Major Energy Reduction
The transformation of the Ethereum network, popularly known as ‘The Merge,’ marked a significant shift in the blockchain’s energy usage and climate impact. A detailed report by the Cambridge Centre for Alternative Finance (CCAF) meticulously dissects this journey, offering invaluable insights into Ethereum’s historical and current ecological footprint. This transition, deeply rooted in environmental considerations, demonstrates a pivotal change in the digital asset ecosystem.
Ethereum’s Environmental Footprint Transformed, Says CCAF Report
Before The Merge, Ethereum’s proof-of-work (PoW) mechanism demanded considerable energy, largely due to the computational intensity of mining processes. This phase, while essential for the network’s security and integrity, raised environmental concerns due to its high energy consumption. The latest CCAF report highlights this period as a critical phase in understanding Ethereum’s total environmental impact. The CCAF’s previous article on the subject did not include geographical distribution
“In a previous article (April 2023), we introduced our work on Ethereum’s pre-Merge electricity consumption,” CCAF research lead Alexander Neumüller wrote. “Although this study signified a crucial preliminary step, it did not capture the geographical distribution of mining activity, thus missing a vital component for a more comprehensive environmental impact assessment.”
This diverse geographical distribution, as noted in the report, was influenced by Ethereum’s initial application-specific integrated circuit (ASIC)-resistant protocol design, which made mining more accessible across different regions. Europe, for instance, played a significant role in the early days, with a noticeable presence in the mining landscape.
The report estimates that the total greenhouse gas (GHG) emissions attributable to Ethereum mining stood at 27.5 MtCO2e up until it transitioned to proof-of-stake (PoS). This figure, accounting for nearly 0.06% of global GHG emissions in 2020, according to the CCAF study, is comparable to the emissions of countries like Honduras and Lebanon.
The Merge, Ethereum’s transition from PoW to PoS, was a strategic shift aimed at increasing scalability and reducing energy consumption. This switch not only marked a reduction in energy use by approximately 99.97% but also set the stage for future scalability improvements, making Ethereum’s network more sustainable and efficient.
Post-Merge, the network’s environmental impact has been significantly reduced. The CCAF’s estimates show a dramatic decrease in GHG emissions, indicating a successful implementation of the PoS mechanism in reducing the network’s ecological footprint. Toward the end of the study, Neumüller asks if Bitcoin will follow Ethereum’s path and remarks that bitcoiners “predominantly uphold its commitment to PoW.”
“The narrative of Ethereum and Bitcoin’s different paths is not just a tale of technological advancements but also reflects different ideologies and priorities of their communities, highlighting the multifaceted complexity inherent in the evolution of leading blockchain networks,” Neumüller concludes.
What are your thoughts on the latest CCAF report on Ethereum? Let us know what you think in the comments section below.
Bitcoin Miners Anticipate Relief: Upcoming Difficulty Reduction Projected After August’s Challenges
While Bitcoin experienced two difficulty adjustments upward last month, the next one, expected around September 6, 2023, is estimated to be a reduction. Currently, the network’s hashrate is about 367.58 exahash per second (EH/s), with an average of 380.90 EH/s over the past ten days.
After a Rocky Month, Bitcoin Miners Poised for Potential Difficulty Decrease
Bitcoin miners have faced challenges recently because the price of BTC dropped last month and the difficulty increased twice, totaling a 6.29% rise. The adjustment on Aug. 22 set the difficulty to a record 55.62 trillion. With five days remaining until the next adjustment, projections suggest miners might see a decrease in the upcoming period. Data from two independent sources indicates a potential decline of 4.42% to 4.9%.
Statistics from bitinfocharts.com show that since August 22, block times have been longer than the typical 10-minute average. During this period, the average block time briefly fell below the 10-minute mark on August 29. If block times slow and 2,016 blocks take more than the usual two weeks to mine, a difficulty reduction occurs to stabilize the situation. If 2,016 block rewards are found in less than the usual two weeks, the difficulty increases.
Metrics from August indicate that miners earned less than they did in July in terms of rewards and transaction fees. In July, miners collected 5.26 million from fees and new BTC block rewards. However, in August, Bitcoin miners amassed only 7.01 million from rewards and fees. Additionally, the current hash price stands at per day for every petahash per second (PH/s) produced, a low not observed since the end of the previous year.
While both price and difficulty have posed challenges to BTC miners in recent weeks, the hashrate has remained consistent and robust. This stability might be attributed to the significant introduction of new machines this year that offer greater terahash per second (TH/s) and improved energy efficiency measured in joules per terahash. While it costs per day for every petahash per second (PH/s) produced, the current TH/s hash rate stands at about .06046 a day. This is 6.20% lower than August’s peak of .06446 a day per TH/s.
What do you think about the challenges bitcoin miners faced in August? Do you expect a better September? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Onchain Fees Dive Below $1, Pending Transactions Drop, and Miners Experience Difficulty Reduction
According to recent Bitcoin data, the count of pending transactions, still awaiting confirmation, has plummeted beneath the 300,000 mark, while onchain fees have seen a reduction over the past week. Starting from July 29, the average onchain fees have fallen below the threshold for each transaction, and as of July 31, 2023, the average fee stands at 0.000026 BTC or .778 per transfer.
Bitcoin’s Reduced Onchain Fees and Falling Unconfirmed Transactions Mark the Start of the Week
On Monday, July 31, 2023, figures from bitinfocharts.com reveal that the average onchain fee on the Bitcoin blockchain has tumbled below for each transaction. As it stands, the average fee on Monday measures at 0.000026 BTC or .778 per transaction, and the median-sized fee is 0.0000085 BTC or .251 per transfer.
Back on July 27, the average onchain fee stood at .482, and from that point, it has declined 47.5%, while median-sized transfer fees on the Bitcoin blockchain have decreased by 57.88% since that day.
Data captured on Monday reveals that the number of unconfirmed transactions has fallen beneath the 300K threshold, with precisely 291,721 pending transactions as of 8:08 a.m. Eastern Time on July 31. In addition, metrics from mempool.space indicate a decline in fees to .33 per transaction.
To clear the entire backlog of 291,721 pending transfers, equivalent to 185 megabytes (MB), around 100 blocks must be mined. The average block time has hovered close to or even under the ten-minute average, standing at 8 minutes per block.
Miners have recently witnessed a 2.94% reduction in difficulty, simplifying the process of uncovering BTC blocks compared to the time before block height 800,352. As of Monday, current statistics demonstrate that the hashrate is smoothly cruising at 425.65 exahash per second (EH/s).
Leading the pack in mining pools today is Foundry USA, commanding a robust 111.18 EH/s, closely trailed by the second-largest pool in terms of hashrate, Antpool, with 88.42 EH/s. Throughout this week, approximately 44 mining pools are contributing their SHA256 hashrate to the Bitcoin blockchain.
What do you think about Bitcoin’s fees dropping and the number of unconfirmed transactions? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Mining Difficulty Set to Surge: Record-Breaking Increase Looms, Erasing Recent Reduction
According to data recorded on July 9, 2023, Bitcoin’s next difficulty adjustment is estimated to rise between 4.74% and 7.7%, erasing the 3.26% reduction that occurred on June 28. Moreover, the total network hashrate achieved a 24-hour all-time high on July 8, reaching 538 exahash per second (EH/s) at block height 797,733.
Record-Breaking Bitcoin Difficulty Increase Imminent, Total Hashrate Taps a 24-Hour Record at 538 EH/s
Statistics recorded on July 9, 2023, indicate that the next Bitcoin mining difficulty adjustment is scheduled for July 12, 2023. In the previous difficulty change, Bitcoin’s mining difficulty experienced a 3.26% reduction, lowering the total to 50.65 trillion. Estimates suggest that the difficulty is expected to increase by 4.74% to 7.7% due to block intervals being consistently shorter than the ten-minute average.
Currently, the average block time on July 9 ranges from 8 minutes and 2 seconds to 9 minutes and 18 seconds per block. Additionally, the total hashrate on Sunday maintains a steady level at 440.72 EH/s after reaching a 24-hour record high the previous day. On July 8, at block height 797,733, records indicate that the hashrate peaked at 538.05 EH/s. The increase in hashrate has accelerated the speed of block intervals, resulting in a higher probability of mining 2,016 blocks faster than the typical two weeks.
An increase ranging from 4.74% to 7.7% will eliminate the decline recorded on June 28 and push the overall network difficulty to another record-setting high. On the lower end of the range, a 4.74% increase would raise the difficulty from the current 50.65 trillion to 53.04 trillion. As a result, it will become the most challenging period in history for miners to uncover BTC blocks. Despite the difficulty reaching historically high levels, several factors have contributed to the rise in hashrate.
One factor is that BTC has increased by 80% against the U.S. dollar during the first half of 2023, making it more lucrative to mine BTC. Additionally, manufacturers have introduced next-generation application-specific integrated circuit (ASIC) mining rigs that offer significantly higher hashrate and improved efficiency. Lastly, mining operations that survived the ‘Crypto Winter’ of 2022 have significantly expanded their activities by acquiring new facilities and deploying thousands of BTC miners.
What are your thoughts on Bitcoin’s upcoming mining difficulty change and the implications for miners? Share your thoughts and opinions about this subject in the comments section below.