Explore the latest in crypto with Ethereum's gas limit hike proposal, Gensler's steady crypto stance, and Ripple's valuation boost.
Ethereum’s Vitalik Buterin Proposes 33% Gas Limit Hike

Ethereum’s Vitalik Buterin Proposes 33% Gas Limit Hike

Jan 12, 2024
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Welcome to the latest edition of Datawallet Daily. As always, we have scoured Crypto Twitter and the news to bring you the top stories of the last 24 hours:

Ethereum’s Vitalik Buterin Proposes 33% Gas Limit Hike

In a recent Reddit AMA, Ethereum co-founder Vitalik Buterin proposed a 33% increase in the Ethereum gas limit, from 30 million to 40 million, to enhance network throughput. This suggestion, marking the first potential increase in nearly three years, aims to accommodate more transactions per block, potentially improving the network’s overall capacity.

However, it could also heighten the load on hardware and raise the risk of network spam and attacks. The gas limit, essential for executing transactions and smart contracts, has steadily grown since Ethereum’s inception in 2015. This proposed change comes amidst rising transaction costs on Ethereum, with average gas prices currently around 35 gwei, or $1.89, and spikes observed during high network activity periods.

Gensler’s Crypto Tone Steady Despite Bitcoin ETF Approval

Despite the SEC’s recent approval of spot bitcoin ETFs, Chair Gary Gensler maintains his cautious stance on cryptocurrencies. The decision, influenced by a D.C. court ruling to re-examine Grayscale Investments’ bid for a spot Bitcoin ETF, doesn’t signal a change in the SEC’s view on crypto assets. Gensler emphasized that this approval shouldn’t be seen as an endorsement of Bitcoin or an indication of leniency towards other crypto assets under federal securities laws. He advised investors to stay wary of the risks associated with Bitcoin and related products.

The approval, which requires full disclosure and trading on regulated exchanges, was met with mixed reactions from SEC commissioners. While Republican Commissioners Peirce and Uyeda supported the decision, Democratic Commissioner Crenshaw expressed concerns over potential market manipulation and fraud.

Ripple’s $285M Share Buyback Boosts Valuation to $11 Billion

Ripple Labs is set to initiate a $285 million share buyback, valuing the company at $11.3 billion. This move allows early investors to sell up to 6% of their holdings. Ripple, primarily known for its XRP digital token, plans to spend an additional $500 million to convert restricted stock units into shares and cover related taxes.

CEO Brad Garlinghouse revealed that Ripple holds over $1 billion in cash and $25 billion in digital assets, predominantly in XRP coins. Despite its strong financial position and recent legal victories, Ripple has no immediate plans to go public in the U.S., largely due to regulatory uncertainties. The company is focusing on expanding its operations in Europe and Africa.

Tune.FM Secures $20M for Web3 Music Platform on Hedera

Web3 music platform Tune.FM has recently raised $20 million from LDA Capital to revolutionize the music streaming industry. Utilizing Hedera Hashgraph’s blockchain, Tune.FM allows artists to earn micropayments in its JAM token for streaming and to mint NFTs for their digital music assets.

This funding aims to challenge the traditional streaming model where major corporations dominate profits, by offering artists up to 90% of streaming revenue. Tune.FM’s approach is a testament to the potential of blockchain in decentralizing industries where a few entities hold significant control. However, the practical effectiveness of this model in the mainstream market remains to be seen.

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