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Source: Honeycomb Tech
The Bitcoin ETF resolution is imminent, the Ethereum Cancun upgrade will be activated, Bitcoin’s four-year block reward halving is approaching, and the Web3 industry in 2024 will kick off with these three major events.
The approval of Bitcoin ETFs will provide new guarantees for Bitcoin’s liquidity and investment convenience, thereby attracting more investors to enter the Bitcoin market.The Cancun upgrade of Ethereum will greatly improve Ethereum’s capacity expansion capabilities, thereby providing a stronger underlying infrastructure for the development of Web3 applications.The Bitcoin halving will lead to a decrease in Bitcoin’s supply, which will theoretically push up its price.
The industry predicts that these three things will be the key node for the crypto asset market to turn from bear to bull.
Bitcoin ETF
On December 29, 2023, Reuters released a major news that the U.S. Securities and Exchange Commission (SEC) may inform applicants whether they are allowed to launch Bitcoin ETFs (Bitcoin Exchange Trading Fund), which will give applicants time to prepare for the January 10th launch.
So far, 13 issuers have submitted applications for Bitcoin spot ETFs to the SEC, including Grayscale, BlackRock, Fidelity, VanEck, ARK+21Shares and Bitwise, which intend to be on the Nasdaq and Chicago options.Exchanges such as exchanges BZX and New York Stock Exchange Arca provide spot Bitcoin ETFs.
Image source BitPush
On December 29, several companies submitted amendments; on December 21, several applicants participated in a rare joint conference call with the SEC.
At most, on January 10, the SEC will have to respond to the application for Bitcoin ETFs.It is generally believed in the industry that the possibility of passing this ETF is very high.
Investment research firm Fundstrat predicts that once the Bitcoin spot ETF is approved, the Bitcoin price will jump more than five times from the current level, exceeding $150,000, or even reaching $180,000.More than $2.4 billion is expected to flow into the newly approved US Bitcoin spot ETF market in the first quarter of 2024.
Ethereum Cancun upgrade
Ethereum has not occupied an advantage in its fierce competition with other blockchains for a long time.Its design is relatively complicated and the upgrade process requires a long preparation period.Compared with Bitcoin, Ethereum lacks the advantages of assets, and compared with competitor bracelets, the Ethereum network is prone to congestion due to sudden hotspot applications, resulting in transaction delays and high fees, and its scalability is also limited.
However, it is predicted that the Cancun upgrade in the first quarter of this year will bring huge performance improvements to the Ethereum network.By introducing sharding technology, the Cancun upgrade will enable the Ethereum network to handle multiple shards at the same time, thereby greatly increasing transaction throughput.This will enable the Ethereum network to meet the growing user needs while supporting more decentralized applications and transactions.In addition, the Cancun upgrade will also reduce transaction fees on the Ethereum network.
Ethereum co-founder Vitalik Buterin recently shared an updated roadmap showing a commitment to continuous improvement and innovation.
One of the key updates includes the implementation of single-slot finality (SSF) in the merged Proof of Equity (PoS) improvement.SSF is expected to solve many of Ethereum’s current shortcomings in PoS design, thereby enabling faster and safer transactions.
The developers have also made significant progress in other areas such as Surge, including advances in EIP-4844 and rollups.These improvements enhance Ethereum’s scalability and efficiency, which is crucial to its long-term success.
Buterin’s roadmap also solved the challenges of economic centralization in PoS through Scourge and other measures.The focus of this redesign is to address the issues of maximum extractable value (MEV) and general equity pools, which are crucial to maintaining network integrity and decentralization.
Analysts are optimistic about the future of Ethereum. Some people predict that after Cancun upgrade, Ethereum’s price is expected to reach more than $5,000, and Layer 2 will dominate the Ethereum ecosystem. Decentralized applications on various chains usher in the underlying majorprogress.
Bitcoin Block Rewards Half
April 2024 is expected to halve the Bitcoin block reward, and this cycle will further reduce the supply of Bitcoin, theoretically driving its price to rise.
Bitcoin halving is an established event, namely, the block reward for mining new Bitcoins is halved.The initial (2012) reward was 50 BTC, down to 25 BTC in 2016 and reduced production to 12.5 BTC in 2020.The next halving is expected to occur in April 2024, when the mining rewards per block will be reduced to 6.25 bitcoins.
103 days left before the Bitcoin block reward halving
This year, the agreement represented by Ordinals has led a new trend in the Bitcoin ecosystem, which has gradually changed the appearance of Bitcoin.In particular, the new Bitcoin inscription experiment based on the Ordinals protocol has begun to introduce some new variables to Bitcoin, which has developed towards the “payment currency” attribute for more than ten years, and even began to reveal the initial prototype of the Ethereum ecosystem.
Not only has NFTs appeared in the Bitcoin network, but it can also issue homogeneous token assets with the help of protocols.But at the same time, controversy over “innovation” such as BRC20 is also continuing to spark heated debate.After the inscription, the emergence and development of the Bitcoin Layer2 network may alleviate the pressure on the Bitcoin main network caused by the issuance of new assets.
