👀 Crypto ETFs Are Here. No One Wants Them?

GM Readers. Your daily dose of BitDegree insights is ready 👀

Today’s selection:

• 📉Ethereum Network Fee Drops

• 🙅‍♀️No One Wants Crypto-Related ETFs?

• 🥁MATIC Replacement Deployed

• 📰Bite-Sized News

• 👌Selected Meme of The Day

AVERAGE ETHEREUM NETWORK FEE GOES DOWN

In the context of a reduction in on-network activity, the gas fee on the Ethereum network has declined to its lowest since November 2022.

For the first time since that month, the average transaction cost on the Ethereum network reached $1.13. Subsequently, the simplest transfer of ETH from one wallet to another will cost merely $0.14-0.20.

Today, the average swap cost via the Uniswap platform amounts to $2.11, while making a sale on the NFT marketplace OpenSea costs about $0.82.

A similar fee reduction was observed at the end of 2022, coinciding with the bankruptcy of the FTX exchange.

The decline in on-network activity might be related to a decrease in demand for NFTs. Also, all airdrop hunters have settled down as there have been no new drops for a while, leading to insufficient funds for gas for new transactions.

Additionally, another macroeconomic effect described below is potentially relevant.

TL;DR: Ethereum's gas fees have dropped to their lowest level since November 2022, with the average transaction cost now at $1.13, making simple ETH transfers as low as $0.14-0.20. This reduction is attributed to decreased on-network activity, potentially driven by lower NFT demand and a lack of new airdrops, along with potential macroeconomic factors.

NO ONE WANTS CRYPTO-RELATED ETFs?

On Monday, nine companies simultaneously launched their Ethereum ETFs on the US stock exchanges.

The hype surrounding this event was high, but in reality, it seems that investors are not particularly interested.

For comparison, the trading volume of Bitcoin ETFs at launch was roughly 100 times greater than that of the Ethereum ETFs—200 million versus 2 million.

Does this mean traditional investors are uninterested in ETH?

In fact, these statistics don’t really reveal much!

Firstly, the market conditions now are entirely different. Back then, it was a bull market, and Bitcoin was at $60,000, whereas now we are in a bear market, plus the Federal Reserve has high rates.

Secondly, the current Ethereum ETFs involve futures contracts, not actual ETH. This format is less appealing to many. It is less appealing simply due to the need for risk minimization (since these are derivatives), and managing such assets demands resources, which also require extra expenditures!

Thirdly, for a long time, the SEC could not provide a clear answer as to whether ETH is a security. The launch of an ETF on Ethereum has settled this matter—ETH is officially not a security and has the same status as BTC (commodity money).

In general, it is not yet sensible to draw any conclusions about the value of ETH in the stock market. The launch of a futures ETF on Ethereum is good news from a regulatory clarity standpoint and a big step towards launching a spot ETF in the future.

TL;DR: Nine companies launched Ethereum ETFs on US stock exchanges, but the initial trading volume was significantly lower than Bitcoin ETFs due to different market conditions, the use of futures contracts, and regulatory uncertainties.

MATIC REPLACEMENT DEPLOYED

Ethereum, so to speak, transitioned to 2.0 more than a year ago; now it's time for others to follow suit!

The $POL token has been deployed on the Goerli testnet.

Developers have also published two proposals for enhancing the Polygon network. Everything is progressing smoothly, even though Polygon co-founder Jaynti Kanani has announced his departure from the company.

POL will replace MATIC in Polygon 2.0.

The Polygon 2.0 update is anticipated next year.

Reminder: Polygon plans to morph into a unique super-chain with its internal L0 (Staking Layer) that will secure all other and the latest Polygon chains, like the recently developed via zk (zero-knowledge) – PolygonZKEVM.

TL;DR: Polygon is making progress on its 2.0 update with the deployment of the $POL token on the Goerli testnet, proposals for network enhancements, and the anticipation of replacing MATIC with POL in Polygon 2.0, slated for release next year.

BITE-SIZED NEWS

• Hong Kong Authorities Launch Crypto Task Force in Wake of JPEX Scandal. Hong Kong continues to build its crypto oversight walls.

• FTX's Suspected Hacker Resurfaces with Major Ether Transfers as CEO Stands Trial. Parallel drama unfolds as FTX exploiter and ex-CEO both make headlines.

• Opening Statements Set the Stage in Sam Bankman-Fried's FTX Trial. The long-awaited Sam Bankman-Fried trial has officially begun.

Sounds interesting? Find more crypto news on our website: 

_{SELECTED MEME OF THE DAY}

Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your research and act responsibly with your profits.