2025 is going to seriously usher in some big changes in particular for the crypto world and to be honest with you I don't think many are realizing it yet. We are about to have a president in the USA who owns crypto, has family members that started up their own crypto exchange and who has promised many things to the crypto world.
Now of course I understand that saying one thing and actully doing it is very different however I'm pretty set that Trump as president will be doing things that push for clear and massive adoption of crypto into the USA.
Now mainly this centers around Bitcoin but what about other tokens?
Well the only other one that has very easy access to it would be the other ETF tokens which is Ethereum.
Ethereum is due for some big upgrades as the platform in terms of value has been going down primarily fueled but massive layer2 adoption and lower fees which is causing inflation and less user demand for the token.
Ethereum has gone through major upgrades in the past.
Beacon chain was launched in 2020 as we where pretty much in the middle of the bull market run at that time. (Yes it's wild that it's already been four years since the last bull market) This was a chain that ran in parallel with the main Ethereum chain which allowed developers to test and make changes, fixes etc on the fly for the new blockchain that would take Ethereum from a proof of work token to a proof of stake token.
This then ushered in the Merge event two years later in 2022. This also ushered in the biggest attack on crypto from the SEC saying that staked crypto is a security (which was later proved wrong but the damage was already done).
2023 we saw Shapella go live on the Ethereum mainnet which was a big move as those who staked their ETH on the proof of stake network could now finally unlock it and take it off if they wanted to. Before this time if you staked it you really didn't know when you where going to be able to get your funds out. This IMO at the time caused less people to stake and when the announcement went live that you could withdraw it we would actully see more people pile in as there was a sense of known now that you could get your tokens back out which proved to be right. This caused a massive boom in terms of the amount of Ethereum that was locked up on the network.
After that came Dencun which focused on layer two options for the chain. This mainly came down to making now layer 2 tokens talked to the Ethereum mainnet easier. This caused a rather negative affect on Ethereum as it made it more reliant in terms of speed and lower transaction costs off of the main token creating less demand, less burn etc.
Now we are waiting for the next upgrade called Pectra. Pectra is targeted for Q1 2025 however if it's like anything in the past we can kind of expect for this to be delayed like with any development projects.
Pectra refocuses back on to Ethereums main chain to make it faster and easier to use while increasing security and prep it for more scalability upgrades in the future. Now this in itself doesn't make be bullish at all and instead just shows less and less demand for Ethereum once again.
However Pectra seems like it's going to include some cool EIPs which are other development projects that get tagged on to the core upgrade. These being but are not yet finalized are...
EIP -2537, 2935, 6110, 7002, 7251, 7549, 7685, 7702, 7742 mainly these are UX updates. In particular it allows for validators to stake up to 2,048 ETH on a single validator instead of the 32 and to earn rewards on it all. This should open things up for a lot more staking.
This will most likely be a 2025 upgrades early to mid which means the next upgrade we wont see until 2026.
So does Pectra actully do anything for Ethereum that people are going to care about?
If we look at price action of Ethereum lately we see it really hasn't moved for months now. In fact it's been more stationary then even bitcoin. However recently with the uptick we are seeing some action play out. While I don't believe Pectra will have any real impact on the price of Ethereum the upgrades in 2026 most likely will but it's currently not on the radar or priced in IMO.
What mainly I think will drive things this year will be Trump getting into office and things being more open for crypto. This should mean ETFs explode in value but also other on ramps, new businesses and so forth sprouting up around it all. That's the main bullish factor overall for the entire industry which should also play as much of a critical part in the rally for Ethereum.
Posted Using InLeo Alpha
