Hodler’s Digest: Trends, Insights, and Analysis for the Cryptocurrency Community
As we wrap up the year and dive into the new one, there’s no shortage of intriguing developments in the cryptocurrency space. In this week’s Hodler’s Digest, we’ll explore a VanEck researcher’s optimism for a spot SOL ETF listing, Terraform Labs co-founder Do Kwon’s plea of not guilty, and more. But before we dive in, let’s take a step back and examine what the future might hold for Ether in 2025.
Ether’s Struggles in 2025
As the Ethereum network continues to undergo its transition to proof-of-stake (PoS), it’s natural to wonder how this shift will impact the price of ETH. With Ethereum’s total value locked (TVL) in decentralized finance (DeFi) protocols reaching new heights, it’s possible that the asset could “struggle” in 2025. Here’s why:
Inflation concerns: As the Ethereum supply increases, investors might become increasingly wary of ETH’s inflationary prospects. This could lead to a correction in price, making it more challenging for ETH to grow its market cap.
Competition from rival chains: With the rise of competing proof-of-stake networks like Solana (SOL) and Polkadot (DOT), ETH may face increased competition for assets and users. This could lead to a share of the market capitalization shifting towards these newer networks.
Regulatory uncertainty: As governments continue to grapple with the implications of decentralized finance, regulatory uncertainty could become a major hurdle for Ethereum’s growth. This might lead to increased capital controls, which could impact ETH’s price.
SOL ETF Odds Rise
Despite these potential challenges, there’s reason to believe that Solana could continue its upward trajectory. In fact, VanEck researcher John Spence recently expressed optimism about the likelihood of a spot SOL ETF listing in 2025. Why? Here are a few reasons:
Trading volume: SOL has seen significant trading volume growth in recent months, with daily volumes regularly topping $100 million. This increased liquidity makes it more attractive for ETF providers to list the asset.
Developer activity: Solana has been gaining traction among developers, with its network processing over 1,000 transactions per second. This increased adoption could lead to greater institutional interest in the asset.
Regulatory clarity: As Solana’s regulatory environment becomes clearer, ETF providers may feel more comfortable listing the asset. This could lead to increased exposure for SOL, potentially driving up its price.
Terraform Labs Co-Founder Do Kwon Pleads Not Guilty
In other news, Terraform Labs co-founder Do Kwon has pleaded not guilty to charges related to the collapse of the Terra (LUNA) and Anchor Protocol (ANC). While this development might not directly impact the crypto market, it’s essential to acknowledge the implications of the Terra collapse:
Regulatory oversight: The Terra saga has highlighted the need for greater regulatory oversight in the crypto space. As governments begin to exercise their oversight powers, it’s crucial that industry players adapt to this new environment.
Risk management: The Terra collapse serves as a stark reminder of the importance of risk management in the crypto space. Investors must be prepared for the possibility of assets losing value, and developers must prioritize robust risk assessments.
Hodler’s Digest is a weekly round-up of the most important news and trends in the cryptocurrency space. Stay ahead of the curve by subscribing to our blog and newsletter for in-depth analysis and expert insights.
