Ethereum (ETH) recently surged past $3,700, marking its highest price level since early 2022. This rally coincides with skyrocketing network fees and the U.S. Securities and Exchange Commission (SEC) delaying its decision on spot Ethereum ETF applications.
Ethereum's Price Surge and Network Congestion
- Price Rally: ETH jumped ~7% in 24 hours, reaching $3,720, with a 60% monthly gain amid broader crypto market growth.
- Network Fees: Average gas fees peaked at 79 gwei (219 gwei at highs), costing users over $33 million in a single day—triple early 2024 levels.
- User Frustration: Traders reported delays and high costs for swaps, loans, and other transactions.
👉 Why Ethereum fees are soaring and how to avoid them
The upcoming Dencun upgrade aims to address these issues by improving transaction speed, throughput, and cost-efficiency through proto-danksharding.
SEC Delays Spot Ethereum ETF Decision
The SEC postponed rulings on BlackRock and Fidelity's ETH ETF proposals, citing concerns about:
- Market manipulation risks.
- Ethereum’s proof-of-stake consensus mechanism.
Industry analysts remain split on approval odds, with some noting the SEC’s cautious stance despite its earlier Bitcoin ETF greenlight. Meanwhile, advocates like Coinbase argue ETH ETFs would bolster market legitimacy.
Key Takeaways
- ETH’s price surge reflects bullish sentiment but highlights scalability challenges.
- Regulatory uncertainty persists, with ETF approvals unlikely before mid-2025.
FAQ
Why are Ethereum fees so high?
High demand for block space during price rallies overwhelms network capacity, driving up gas fees. The Dencun upgrade may alleviate this long-term.
Will Ethereum ETFs be approved in 2024?
Unlikely. The SEC has extended its review timeline and requested public comments, signaling prolonged deliberation.
How does proof-of-stake affect ETF approval?
The SEC questions whether PoS poses unique risks (e.g., centralization) compared to Bitcoin’s proof-of-work model.
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