Ethereum hit all-time highs

Fees drop and activity soars.

Author

Daniel Akpobare
September 04, 2024

GM Explorer,

Ethereum is hitting all-time highs—transaction fees are down, activity is up, and Wall Street is taking notice. Let's dive into what’s driving this surge!

Here’s what we got for you today:

  • 📊 Ethereum hit all-time highs!

  • 👏 Japan is planning a major tax cut!

  • 🧱 Around The Block: North Korea ‘aggressively targeting’ crypto firms, warns FBI.

📊 Ethereum Hit All-Time Highs!

Ethereum is seriously buzzing right now!

Its on-chain activities have hit an all-time high, and guess what? Transaction fees have nose-dived by more than 90%.

What's behind this wild swing?

This upgrade introduced blobs and proto-danksharding technology to Ethereum’s ecosystem, enabling layer-2 networks to handle more data and transactions.

It’s not just easing congestion on Ethereum's blockchain; it's also slashing transaction costs across Ethereum and its L2 networks.

This has led to a drop in revenue on Ethereum’s mainnet and a flood of new users!

But get this: some crypto enthusiasts, like Syncracy Capital co-founder Ryan Watkins, see this surge in Ethereum on-chain activity coupled with a 90% drop in fees as a bullish sign, not bearish.

Interestingly, Wall Street is keeping a close eye on Ethereum.

Following the debut of spot Bitcoin exchange-traded funds (ETFs) in January, the SEC has also given the green light to similar funds backed by ETH.

And by the end of August, investors had traded over $2 billion worth of spot Ether ETFs.

However, the long-term impact on spot ETH ETFs is still uncertain, and debates about whether these developments align with Ethereum's ethos are heating up.

👏 Japan is Planning a Major Tax Cut!

If there's one thing the crypto industry has been fighting tooth and nail, it's a more reasonable tax structure.

And just when it seemed like that dream might never come true—boom! Japan steps in with a glimmer of hope!

They’re now seriously considering slashing the tax rate from a hefty 55% to a flat 20%, which would give cryptocurrency investors a massive break.

I bet some investors are already celebrating! And who can blame them? This is big news!😀

So, how did we get here?

Word on the street is that the Financial Services Agency (FSA) has been pushing for this reform.

They argue that cryptocurrencies should be treated like other financial assets, not just lumped in as some miscellaneous income.

And honestly, that makes total sense— As Ogura Masanobu, Deputy Secretary-General of the Liberal Democratic Party, put it, it's all about logical reasoning and recognizing crypto as a legitimate investment opportunity.

However, it's just part of Japan's broader plan to modernize its asset management and taxation systems for now, and nothing is set in stone yet.

Still, if they’ve put it on the table, that’s a good sign, right? We'll have to wait and see.

But one thing's for sure: if this tax shift becomes a reality, it’ll be a huge leap forward for Japan's crypto sector, likely attracting more investors and fueling growth.

We can only hope other countries are taking notes!

Want to learn more about this exciting development? Check it out here.

🧱 Around The Block

That's all we've got for you today.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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