Originally published on: October 31, 2024
Ether surged to $2,700 before facing a setback, sparking discussions among traders about the possibility of hitting the $3,000 mark. To achieve this milestone, Ethereum must navigate through reduced transaction fees, increased institutional adoption, and enhanced incentives for ETH staking.
Joe Consorti, a Bitcoin advocate and builder at Theya Inc., highlighted the lukewarm response to spot Ethereum exchange-traded funds (ETFs) in the U.S. compared to Bitcoin ETFs, which attracted significant inflows. However, attributing Ether’s struggles solely to weak institutional demand overlooks the broader context, such as Solana’s rise in DApp transaction volumes.
While Solana leads in decentralized exchange (DEX) volumes fueled by memecoin trading activity, Ethereum maintains its stronghold in DeFi applications like Balancer and Curve. With a higher total value locked (TVL) and dominance in layer-2 volumes, Ethereum remains a force to be reckoned with in the DApps market.
Despite a robust onchain DApp volume, Ethereum’s transaction fees have remained stagnant, prompting developers to address these concerns through proposed improvements like EIP-7742 and the upcoming EthereumPectra upgrade. Balancing the need for low-cost transactions with rewarding ETH staking poses a challenge for Ethereum’s growth.
Institutional adoption remains a key factor in Ethereum’s journey to a $3,000 valuation, complicated by regulatory barriers affecting spot Ethereum ETFs. To sustain a price rally, Ethereum must address supply concerns and optimize its structure for long-term security and sustainability.
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Disclaimer: This article provides general information and does not constitute legal or investment advice. The author’s views are personal and do not necessarily reflect those of Cointelegraph.
