Grayscale asserts that Ethereum is maturing with each upgrade and that the ongoing network upgrades will soon resolve the scalability issues that have hindered adoption. The upcoming Dencun upgrade, Ethereum’s deflationary supply model, and revenue generation are identified as the main factors contributing to the network’s growth. Additionally, the approval of spot Ether exchange-traded fund (ETF) applications by the U.S. securities regulator, expected by late May, could further benefit Ethereum. Despite acknowledging the high fees and slower transaction speeds as challenges, Grayscale remains optimistic that Dencun will enhance Ethereum’s scalability. Successful implementation of Dencun could reduce rollup costs by up to 10 times. Grayscale’s data shows that although Ethereum has been surpassed in transaction count, it remains the largest network by total value locked, with $45.9 billion, compared to Tron’s $8.7 billion.
In other news, the proposed $4.3 billion plea deal between Binance and the United States Department of Justice has been approved by a district court judge. Binance will pay approximately $1.8 billion in fines and forfeit the remaining $2.5 billion. This plea deal represents one of the largest criminal penalties in U.S. history. The judge emphasized that the company’s ethics were compromised by greed. Binance’s deputy general counsel expressed acceptance of responsibility for past actions and highlighted the compliance enhancements made in recent years. As part of the plea deal, Binance will be subject to compliance monitoring by an independent firm for up to five years. Binance’s founder, Changpeng “CZ” Zhao, pleaded guilty to several Anti-Money Laundering and sanctions charges and is expected to face up to 18 months in prison on April 30, 2024.
Furthermore, U.S. Representative Tom Emmer criticized the U.S. Office of Management and Budget (OMB) for approving an emergency request that imposes mandatory information collection on Bitcoin mining firms. Emmer argued that emergency orders should only be used in cases of imminent threats to public safety, which he believes Bitcoin mining operations do not pose. Emmer expressed concerns that this approval undermines the country’s system of checks and balances. The order requires cryptocurrency mining firms to provide detailed reports on electricity consumption, energy providers, chip types, and other proprietary information. Emmer questioned the Energy Information Administration’s claim of being a policy-neutral agency, suggesting that it is enforcing the Biden administration’s regressive policy position against energy consumption as it relates to Bitcoin and proof-of-work cryptocurrencies.
In a separate incident, the ESPN NBA reporter Adrian Wojnarowski’s account was hacked, leading to the promotion of a fake NBA Top Shot nonfungible token (NFT) scam. The hacked account falsely advertised a “free NFT pack” and directed users to a fake website for the airdrop. The scam garnered significant attention before being removed. The official NBA Top Shot account issued a warning about the scam and advised users not to take any action.
In other news, Grayscale’s Bitcoin Trust (GBTC) experienced its lowest daily outflow of $44.2 million since spot Bitcoin ETFs were launched. GBTC has now seen $1.8 billion in outflows, a significant decrease from January’s outflows of over $5.6 billion. Additionally, bankrupt cryptocurrency exchange FTX has agreed to sell FTX Europe back to its founders for $32.7 million after facing difficulties finding other buyers. The Swiss startup Digital Assets AG, which was later renamed FTX Europe, was acquired in a $323 million deal in 2021.