Ethereum shows good perspectives despite the correction
Since its last All-Time-High (ATH) in late February, Ethereum (ETH) had a price correction of over 26%. However, there is some good news surrounding this blockchain now. More high-profile investments and adoptions might boost the currency once again soon.
For starting, we need to mention a new record, if not in price. The miner’s revenue hit an ATH last month, with over $1.3b. The mining activity saw an increase of over 16%, but the total was made of transaction fees as well, by almost 53%. This is no wonder: last February, the fees on Ethereum ranged from $16 to almost $40 per transaction.
On the other hand, the high fees might be profitable for miners, but not at all for users. Luckily for many, Vitalik Buterin proposed to include the Ethereum Improvement Proposal (EIP) #3298 in the next London update for July. That would mean no more gas refunds, which can contribute to lower the gas demand and price. And it seems to be working from now because since the announcement the gas prices fell to $12.
Grayscale Investments is taking advantage of it to add more ETH to its fund. So, they started March buying the dip with 3,347 ETH more to their huge wallet of 3.17m ETH. Besides this company, the Canadian Evolve Funds Group just filed a prospectus for an ether exchange-traded fund (ETF). If approved, it would be the second of its kind in the country.
Finally, Amazon just embraced Ethereum too. They added support for this platform to their managed blockchain service in Amazon Web Services (AWS). According to their post, “with this launch, AWS customers can easily provision Ethereum nodes in minutes”. From a bullish approach, that’d mean an easier ETH adoption for companies.
A drawback: Furucombo hack
Despite the good news, not everything is bright. Recently, the Ethereum-based DeFi protocol Furucombo was hacked by over $14m. The responsible behind the attack managed to take control of Furucombo’s proxy smart contract, which let him illegally withdraw ETH and ERC-20 tokens, including DAI and USDC.
Then, the hacker used the mixer Tornado Cash to cover their transactions, swapping cryptocurrencies on-chain. So, the total figure of the robbery ($14m) is barely an approximation.
Furucombo is used to create a DeFi investment strategy with multi-step transactions, without knowledge of programming. That’s an attractive option for numerous investors, who are now affected by the hack. Luckily for them, Hsuan-Ting, CEO of crypto exchange Dinngo, the firm behind Furucombo, said they’re preparing a mitigation plan and the users shouldn’t be worried about their funds.
Featured Image by Dean Crosby / Pixabay
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Originally published at https://blog.alfa.cash on March 2, 2021.