Big challenges lie ahead for Ethereum

Even more ambitious upgrades are planned for 2023. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Market Activity Total Market Cap $816.11B (+0,98%) 24 Hour Volume $40.26B (+58.66%) Notable Movers[(XDC) $0.02693]( (+5.74%) Notable Movers (DeFi)[(RUNE) $1.37]( (+1.60%) Bitcoin Dominance 40,02%[(+0,18%)]( Bitcoin Price[(BTC) $16,986.02 (+1.59%)]( Ethereum Price[(ETH) $1,223.15 (+3.24%)]( Cardano Price[(ADA) $0,2613 (-1.01%)]( [Today’s Top Stories ] Ethereum in 2022 [Listen to the CMC 50 podcast!]( 🔥 Between now and the New Year, the CoinMarketRecap podcast is doing something a little different. Connor and Molly Jane are counting down the biggest crypto stories of the year in a new series called the CMC 50. You can find us on [Apple Podcasts]( [Spotify]( and [Google Podcasts](. And you can also change the rankings of the CMC 50 by voting through our [interactive list]( [The 10 biggest Ethereum stories of 2022]( 🚨 It's been a big year for the world's second-largest blockchain — but heading into 2023, Ethereum's going to face some big challenges. So… what were the 10 most important things that happened this year? [Today’s Top Stories ] 1. [The Merge.]( Ethereum's switch from a Proof-of-Work to a Proof-of-Stake blockchain was compared to completely renovating a house while you're still living in it. After years of painstaking work, The Merge was carried off without a hitch. Miners have now been rendered obsolete, with validators responsible for verifying transactions. 2. [Going green.]( The Merge has had a huge impact on the amount of energy that's used by the Ethereum blockchain. Some estimates suggest its electricity use and carbon footprint have plunged by 99.9%. All of this could mean this network is regarded more favorably by regulators in the future. 3. [Plunging prices.]( Despite this year's huge achievements, ETH hasn't been immune from the crypto winter. At the time we're writing this, the world's second-largest cryptocurrency has fallen 75% from all-time highs set in November 2021. The Merge did little to deliver bullish momentum and may have been priced in. [Today’s Top Stories ] 4. [Future plans.]( Vitalik Buterin is determined to slash transaction fees, meaning ETH becomes more practical as a payment method in developing economies. One key upgrade, sharding, will be like turning a two-lane road into a 12-lane highway — greatly enhancing how many transactions the blockchain can handle per second. 5. [Staking shake-up.]( A whopping 15.6 million ETH has been locked up in a deposit contract for two years — funds stakers have been unable to access. A top priority now is ensuring this crypto can be withdrawn, attracting more stakers to get involved. This upgrade is scheduled to take place in March, but could end up being delayed. 6. [Is ETH a security?]( The Merge has had some downsides. In the eyes of regulators, it may have transformed ETH into a security. Such a classification brings a lot of baggage to a cryptocurrency. SEC Chairman Gary Gensler believes Ether can no longer count as a commodity, and some U.S. politicians feel the same. 7. [Horrific hacks.]( Cross-chain bridges that allow crypto to move from one blockchain to another have come under attack in 2022. And Ether's by far the most locked asset in such platforms. Well over $1.5 billion was stolen in six hacks alone — and hundreds of smaller thefts have happened as well — thrusting security into the spotlight. [Today’s Top Stories ] 8. [Plenty of competition.]( This year was not good for Ethereum's dominance of the NFT market. Major drops have clogged the blockchain so badly that gas fees spiked to $3,500 and beyond — shutting down the network for other transactions. Minting fees have also been steep, prompting some collections to use rival blockchains. 9. [ETH miners revolt.]( One group that really wasn't happy with The Merge were miners — despite the fact that switching to Proof-of-Stake was the plan all along. Attempts to create a Proof-of-Work hard fork haven't really gone well though, and demand has been pretty tepid to say the least. 10. [SBF causes chaos.]( The implosion of FTX has sent a ripple effect through the whole crypto industry — and Ether hasn't been immune from this. ETH got clobbered — dropping from $1,572 on Nov. 6, when the collapse began, to $1,083 three days later — a drop of more than 30%. We could see further headwinds in 2023. Thanks for reading! Have a great day — more news tomorrow! [Facebook]( [Twitter]( [Instagram]( [Telegram]( Written by Molly Zuckerman and Connor Sephton Was this email forwarded to you? [Sign up here](. WANT MORE CRYPTO BITES? [Sign up here]( for Daily Newsletters, Promotions and Events and Prices [ADVERTISE]( | [CAREERS]( | [FAQ]( © 2022 CoinMarketCap [Unsubscribe]( [coinmarketcap.com]( CoinMarketCap OpCo LLC, 8 The Green, STE 6703, Dover, Delaware 19901, United States