- SEC crackdown on crypto staking and PoS cryptocurrencies threatens Ethereum.
- Ethereum’s growing adoption by institutional investors and upcoming upgrade boost prospects.
- ETH price surge attributed to macroeconomic conditions and increased liquidity.
According to Guy Turner, a prominent figure in the crypto industry and host of the popular YouTube channel Coin Bureau, Ethereum finds itself at a critical juncture. In a recently shared video, Turner highlighted the Securities and Exchange Commission’s (SEC) crackdown on crypto staking and Proof-of-Stake (PoS) cryptocurrencies as a potential indirect threat to ETH. However, he also acknowledged the positive impact of Ethereum’s growing adoption among institutional investors and an upcoming upgrade, which could enhance the prospects of Ethereum.
According to Turner, Ethereum’s future may be adversely affected by the SEC’s intensified scrutiny on DeFi and Stablecoins, as it compounds the existing regulatory hurdles faced by the platform.
According to Turner, Ethereum’s forthcoming upgrade is anticipated to be a significant catalyst in maintaining the upward trajectory that the leading alternative cryptocurrency has witnessed. Turner holds the belief that this upgrade has the potential to enable Ethereum to reclaim its market dominance from rival protocols.
According to Turner, the price of ETH has experienced a significant surge, nearly doubling since the start of the year. He attributes this impressive price rally to a confluence of influential factors, including macroeconomic conditions, specific dynamics within the cryptocurrency market, and fundamental aspects such as the supply and demand of ETH. Turner particularly highlights liquidity as the primary macro factor that has played a pivotal role in driving positive market conditions during the year’s initial half.
Turner elaborated on the increasing liquidity in the market, attributing it to the U.S. Treasury Department hitting its debt ceiling. Consequently, the government of the United States injected funds into the economy, further augmenting the bank bailout that transpired in March.
In anticipation of future developments, Turner foresees the forthcoming EIP-4844 upgrade as a momentous milestone for Ethereum. He elucidated that this upgrade, commonly known as Proto-Danksharding, will enable Ethereum to achieve scalability on par with centralized computer systems. Its primary objective is to tackle the key hindrance to Ethereum’s scalability: data availability.
The Ethereum Proto-Danksharding upgrade is yet to receive a definitive implementation date, although industry insiders anticipate its rollout during the latter half of 2023.
