Between revolutionary announcements, technological developments and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovation and a field of regulatory and economic battles. Here is a summary of the most impactful news from the past week around Bitcoin, Ethereum, Binance and Solana, etc.
The Post-Halving surge: Bitcoin aims for $90,000
According to Alliance Bernstein, a global investment leader, the halving planned for April could be the catalyst propelling the price of Bitcoin to new highs. This event, which sees the reward for miners halved, has historically generated significant appreciation in the price of Bitcoin due to the effect on its scarcity. Analysts Gautam Chhugani and Mahika Sapra point out that despite Bitcoin currently missing the $90,000 mark, market conditions, including enthusiasm around Bitcoin ETFs and reduced selling pressure among miners , lay the foundations for an explosive rise in post-halving prices.
The halving, scheduled for April 20, is an event closely scrutinized by the crypto community for its impact on the Bitcoin economy. It algorithmically and predictably reduces the amount of new bitcoins generated, thereby increasing its scarcity. Bernstein argues that the combination of factors such as record inflows into crypto funds, notably ETFs, and favorable market dynamics, could lead to significant appreciation of Bitcoin. The recent approvals of 11 Bitcoin ETFs by the US SEC only reinforce this anticipation.
Solana faces critical congestion: Victim of its own success
The Solana blockchain, often celebrated for its high transaction speeds and low costs, faces a major network congestion challenge. This situation is a direct result of its growing popularity and mass adoption of its services. Recent reports indicate significant network saturation, leading to notable delays in transaction execution and a compromised user experience. Congestion has been exacerbated by the rise of memecoin activities, which, while demonstrating community engagement, have highlighted the limitations of current infrastructure in terms of scalability and stability.
This critical congestion highlights the challenges inherent in managing a high-throughput blockchain like Solana, especially in the face of growing demand and unanticipated usage spikes. Transaction confirmation times have increased considerably, with an average ping time hovering between 20 and 40 seconds, and a transaction failure rate estimated between 50 and 80%. This situation has sparked criticism from the community and calls for sustainable solutions to improve the network's capacity and resilience to the influx of activity.
Giggle Academy: Education reinvented by CZ, after Binance
After having left its mark on the world of cryptocurrencies through Binance, Changpeng Zhao (CZ) is opening a new chapter with Giggle Academy, an ambitious educational platform. Aiming to democratize access to education, this philanthropic project stands out for its total accessibility and its non-profit model. Giggle Academy aims to break educational barriers by providing a gamified and adaptive learning platform, accessible for free to all. The initiative underlines CZ's desire to contribute positively to society, by providing educational opportunities to those most in need, particularly young people in regions where access to quality education remains a challenge. .
Giggle Academy does not seek to replace traditional education systems, but rather aims to complement and enrich young people's learning journey. By focusing on basic education and providing quality educational content, CZ hopes to open up better and broader employment opportunities for disadvantaged youth.
Controversy around Ordinals: Bitcoin between innovation and discord
Bitcoin, often praised for its simplicity and resilience, finds itself at the heart of growing controversy with the arrival of Ordinals. The latter, allowing arbitrary data such as images to be inserted into Bitcoin transactions, have sparked lively debate within the community. While some see it as an enriching innovation, others criticize a use that takes the network away from its primary mission: being an efficient and decentralized digital currency. The integration of Ordinals has led to a notable increase in the size of blocks and, by extension, the blockchain and raises questions about the scalability and efficiency of the network in the long term.
The growing use of Ordinals and how they are integrated into transactions highlights a fundamental dilemma: how to balance innovation with maintaining the integrity and fundamentals of Bitcoin. The growing discontent against Ordinals reflects a broader concern about the risks of centralization, increased transactional costs and a blockchain cluttered with non-essential data. As the debate continues to rage, the Bitcoin community finds itself at a crossroads, seeking solutions to align the exploration of new possibilities with the preservation of the very essence that made Bitcoin a technological and financial revolution.
BlackRock launches into crypto with $100 million Ethereum fund
BlackRock, the investment giant, is taking a strong action with the launch of a revolutionary crypto fund. By depositing $100 million in USDC on the Ethereum network, BlackRock is sending a powerful message about the future of digital assets.
BlackRock's initiative represents much more than just an investment in crypto, it reflects a recognition of the value and potential of digital assets by the traditional financial sector. The move could inspire other financial giants to explore and invest in crypto, thereby increasing the legitimacy and acceptance of cryptocurrencies as a viable asset class.
France establishes itself as a European leader in crypto adoption
In 2024, France stands out as one of the most advanced European countries in cryptocurrency adoption, with one in eight French people now holding cryptoassets, marking an impressive 28% increase in just one year. This spectacular rise is mainly attributed to the commitment of French youth, with those under 35 representing 57% of cryptocurrency holders in the country. Pronounced interest in bitcoin continues to dominate, although there is also a diversification of investments towards other digital assets such as stablecoins and NFTs, reflecting a growing curiosity and openness towards towards the crypto ecosystem as a whole.
The motivation behind this mass adoption varies, from the search for attractive financial returns to the perception of cryptocurrencies as safe havens in an unstable economic context. Despite recent scandals and bankruptcies in the crypto space, which have sowed doubt among some, a significant part of the French population is still considering investing in cryptos. The French have injected between 32.5 and 42.5 billion euros into cryptocurrencies in 2024. France, which was once considered lagging behind in crypto adoption, is now asserting itself as a major player in the European scene, although the path towards widespread adoption is still strewn with challenges to overcome.
Turbulence for the Ethereum Foundation facing the scrutiny of the SEC
The Ethereum Foundation currently finds itself in a delicate position, under the watchful eye of the United States Securities and Exchange Commission (SEC). This attention is due to the SEC's investigation into transactions and financial activities related to the foundation, particularly after its controversial Initial Coin Offering (ICO) in 2014. The investigation is intensifying in a context where the passage of Ethereum Proof of Stake (PoS) raises questions about its classification as “security” or “commodity”. The distinction is important because it determines the regulatory framework applicable to Ethereum and could have significant implications on its future, particularly regarding the viability and approval of Ethereum ETFs.
The SEC, by examining the structure and operation of the Switzerland-based Ethereum Foundation, as well as the recently adopted PoS consensus mechanism, seeks to establish whether Ethereum can be considered a “security” under US laws. This potentially new classification comes at a critical time, with companies like Prometheum taking the lead in complying with possible regulation by placing themselves under SEC supervision.
This is the main thing to remember for this week. But if you want a more detailed recap and in-depth analysis straight to your inbox, feel free to subscribe to our weekly newsletter.
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