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Vitalik Buterin sets ambitious target of 100,000 TPS in Ethereum’s rollup-centric scaling roadmap
In a recent blog post, Vitalik Buterin outlined Ethereum's long-term scaling goal of achieving over 100,000 transactions per second (TPS) across both Layer 1 (L1) and Layer 2 (L2) networks. He reaffirmed the network’s rollup-centric roadmap, aiming to balance scalability with decentralization and security. Buterin emphasized the need for improvements in data availability sampling to enhance transaction speed, setting a medium-term goal of increasing bandwidth to 16 MB per slot, which could boost TPS to 58,000. He also explored potential solutions like Plasma and more efficient gas limit strategies to scale Ethereum’s base layer while minimizing risks to decentralization. This post follows Buterin’s previous commentary on addressing Ethereum’s technical challenges, such as finalization time and validator requirements.
US Falling Behind in Global Stablecoin Adoption, Says Chainalysis
Growing global demand for US dollar-backed stablecoins and regulatory uncertainty in the US have driven stablecoin adoption outside the US, according to an Oct. 17 report from Chainalysis. While the US has seen record Bitcoin activity following the launch of spot ETFs, stablecoin use on US-regulated exchanges has dropped from 50% in 2023 to below 40% in 2024. In contrast, non-US platforms have surged past 60%. This shift is fueled by demand for stable assets in emerging markets and countries with unstable currencies, as well as more favorable regulatory environments in regions like Europe and the UAE. Chainalysis warned that without clear stablecoin regulations, the US risks falling behind in this growing market.
Ireland Fast-Tracking Crypto Laws Ahead of EU Money-Laundering Regulations
Ireland is drafting urgent cryptocurrency regulations ahead of the European Union's forthcoming Anti-Money Laundering (AML) standards. Finance Minister Jack Chambers informed the cabinet that the legislation aims to update crypto rules before the EU’s stricter AML laws take effect on December 30. These upcoming regulations will enhance financial intelligence units' power to suspend transactions and introduce stricter reporting and monitoring requirements for large transactions, including a €10,000 cash payment limit. The EU's AML framework complements the Markets in Crypto-Assets Regulation (MiCA), which Ireland is keen to implement to maintain its position as a leader in financial innovation. Ireland’s Central Bank has approved 15 virtual asset service providers, including major firms like Ripple, Coinbase, and Gemini.
Trading Desk Insights
BTC retreated to $66,600 from its peak at $68,400 as the market undergoes a correction from the upper boundary of the prevailing trend channel. Currently, BTC is sidestepping a breakout from this sustained consolidation pattern established since March, opting instead for a pause as the market anticipates the next significant move. With 94% of BTC's circulating supply now in profit, historical trends suggest that profit-taking could intensify soon. Indeed, Glassnode reports over $11 billion in profits realized in just the past week.
Market sentiment experienced a jolt when Tesla shifted its BTC holdings for the first time in over two years, although these coins have not yet hit any exchange wallets.
Despite a strengthening Dollar Index (DXY), which now stands above 103.5—a level last seen during the tumultuous yen carry trade unwind on August 5th that drove BTC down sharply from $65,000 to $49,000—BTC has maintained its resilience.
In political betting markets, Trump's odds have surged, with a 60% likelihood of a 2025 White House return according to Polymarket, where the odds of BTC reaching $70,000 in October jumped to 64% this week, reflecting a robust 45% increase. Furthermore, there's a 75% chance of BTC setting new record highs in 2024.
In the ETF arena, BTC continues to draw significant capital with $458.5 million in recent inflows, predominantly from Blackrock, which contributed $393.4 million. This marks over $1.6 billion in BTC inflows across four sessions. ETH ETFs also showed positive movement, capturing $24.2 million in inflows, also primarily led by Blackrock.
Stocks climbed on Thursday, buoyed by strong economic indicators that have tempered recession fears, with semiconductor stocks leading the charge. Meanwhile, the European Central Bank lowered its key interest rate to 3.25% on Thursday, marking its third quarter-point cut this year.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
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