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Ethereum Halving Transformation: From ‘Alleged Junk’ to Potential Jewel 

Last Updated April 5, 2024 3:38 PM
Shraddha Sharma
Last Updated April 5, 2024 3:38 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • A trader dubs Ethereum as ‘junk’ due to high gas fees and complex layers, but supporters disagree.
  • Ethereum’s performance post-Bitcoin’s halving hints at a surge.
  • Job market data indicating economic strength could weaken short-term trajectory.

Analysts believe that Bitcoin halving could lead to strength in Ethereum along with the altcoin market. Meanwhile, a rate cut delay could dim the near-term outlook for ETH but transaction surge and on-chain activity are signaling to longer-term value.

Ethereum’s Criticism Dismissed by Support

Author and trader Peter Brandt raised skepticism about Ethereum, labeling it a “junk coin” in a recent post .

While he criticized its functionality and high transaction costs, Brandt called ETH a BTC pretender. Crypto commentator Toby Cunningham points out Ethereum’s reliability compared to competitors like Solana, emphasizing that despite its high fees, the assurance of a consistently operating network is crucial for the investor base.

According to him : “Solana will never overtake ETH in its current state.”

Additionally, crypto commentator Jelle sees the platform’s potential with Bitcoin halving as a catalyst in terms of price performance.

Meanwhile, what is expected to be unlikely is a decision on Ethereum ETFs to further strengthen the outlook. Bloomberg analyst James Seyffart reminds  the public that the SEC’s request for comments on ETF proposals is routine and not inherently bullish.

Jobs Data and Ethereum’s Path

US jobs data for March revealed a stronger-than-anticipated economy, potentially signaling a more patient approach from the Federal Reserve regarding rate cuts. The addition of 303,000 jobs had a tangential impact on Ethereum. At press time, ETH is trading above the $3,300 level.

Another notable factor is the Ethereum network activity after the Dencun upgrade. As per IntoTheBlock, the network has witnessed an increase in transaction volume, reaching 32 million per week on main rollups. This hints at a broader user base and enhanced network engagement.

Time for Ethereum to Shine?

The discourse around Ethereum is shifting as the broader market strength. Short-term volatility is likely on the back of broader market events like the strong US labor market and the Fed’s monetary action. but increased transactions and a potential uptick in activity could surprise skeptics.

While it’s clear that ETH has hurdles to overcome, including competition and operational costs, there is potential after Bitcoin halving.


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