Within a discussion at Bitcoin (BTC) 2023, Jameson Lopp, co- founder and chief technology officer at Casa, a Bitcoin (BTC) wallet provider, shared insights into the growing desire between individuals to have complete autonomy over their Ethereum (ETH) assets.
Lopp emphasized Casa’s obligation to accommodate Ethereum (ETH) support in response to the expanding community of users seeking such solutions.
Casa Explores Ethereum (ETH) Support and Secure Self-Custody Solutions
Events like the collapse of FTX Trading Ltd in 2022 have brought attention to the importance of securely storing Ethereum (ETH) and its associated crypto tokens, including crypto stablecoins. Lopp shared that Casa had encountered clients who suffered losses because they lacked a distributed cold-storage setup, resulting in the disappearance of crypto stablecoins and other assets.
1) Today @CasaHODL is happy to reveal an expansion in our self-sovereignty as a service offering. We’re bringing our best-in-class user experience to cold storage for Ethereum (ETH) holders.
— Jameson Lopp (@lopp) November 30, 2022
As a result to this challenge, Casa made the decision to reveal Ethereum (ETH) support in December. Regardless of facing criticism from Bitcoin (BTC) enthusiasts on social media, the company went ahead with the intend to meet the demands of its clients.
Lopp recognized that numerous individuals perceive self-custody as daunting owing to the perceived intricacy of the security protocols involved. Despite the fact that the preliminary steps of creating a wallet and initiating digital currency transfers are relatively uncomplicated, the adoption and implementation of adequate security measures can present difficulties for individuals.
He reassured users that Casa’s software incorporates best practices directly into the product, enabling users to follow clear instructions and minimizing the danger of catastrophic losses resulting from human error.
Lopp characterized Casa’s offering as a “rigorous cold-storage system with distributed keys,” originally intended for affluent individuals who were prepared to invest $10,000 per year for custody services. Nevertheless, Casa has broadened its product lineup to encompass a free version that provides limited functionalities, with the objective of attractive to a wider spectrum of users.
The concept of self-custody in the digital currency space traces its roots back to the 1st Bitcoin (BTC) wallet, BitcoinQT, developed by Satoshi Nakamoto. Regardless of the expansion of the cryptocurrency user base, numerous individuals still opt to store their assets on centralized exchanges, disregarding warnings from specialists about the associated risks.
To address this situation, wallet providers are actively exploring new technologies that simplify the process of self-custody. By offering user-friendly solutions, they intend to promote more individuals to take control of their digital currency assets and reduce their reliance on centralized platforms.
Ethereum (ETH) Staking Trends – Shapella Success, Growing Staked Assets, and Yield Potential
The past few Shapella upgrade of Ethereum (ETH) has sparked considerable interest between both institutional and retail investors owing to its groundbreaking feature allowing the withdrawal of staked Ethereum (ETH) tokens.
Regardless of initial concerns of a potential sell-off, the impact on price was relatively subdued, and the network experienced a gradual decrease in exit activity during several weeks. It’s worth noting that, the total amount of staked Ethereum (ETH) has now surged to an unprecedented level of 20.8 Million crypto tokens, with Lido Protocol emerging as the leading contributor with a substantial deposit of 6.2 Million tokens.
In the case of staking, Ethereum’s current ratio stands at 17.45%, indicating the proportion of eligible supply that is staked. Nonetheless, in comparison to certain competing proof-of-stake (PoS) chains boasting staking ratios surpassing 60%, Ethereum’s ratio appears relatively modest. This observation indicates the untapped potential for whole lot of growth in staking participation within the Ethereum (ETH) network.
In the following year, the staking ratio could potentially double, driven by the strong inflow of financial resources into liquid staking projects such as Lido and Rocket Pool. Furthermore, centralized exchanges, including Giottus, now offer staking services with attractive annual percentage yields (APY) ranging from 5 percent to 7%, which can potentially attract retail investors.
Along with the capacity for financial resources appreciation, staked Ethereum (ETH) provides an attractive yield compared to traditional bank deposits. As interest prices are expected to decline in the near term, Ethereum (ETH) staking emerges as a viable alternative for earning attractive bonus while benefiting from the expansion potential of the investment itself.
Ethereum (ETH) shares its earnings with validators, and recent phenomena like the memecoin frenzy resulted in validators gaining over 20,000 Ethereum (ETH) in the past week alone.
The success of Ethereum (ETH) staking platforms has not gone unnoticed, as evidenced by the whole lot of profits in the crypto tokens of top platforms like Lido DAO (LDO) and Rocket Pool (RPL), even in a sideways market. The growing interest in the market is further illustrated by Asymmetry Finance’s recent $3 Million raise to expand its market share.
Nonetheless, concerns linger regarding potential regulatory crackdowns. The United States Securities and Exchange Commission (SEC) recently penalized Kraken with a $30 Million fine for offering staking services without proper registration.
Coinbase Crypto exchange, another major player, has temporarily paused withdrawals of staked Ethereum (ETH), leading to apprehension between investors. It is crucial to consider these regulatory dangers alongside short-term macroeconomic dangers when deciding to stake ETH.
For those who believe in Ethereum (ETH) and its ecological system, investing in the investment or building an ETH-heavy portfolio could be a consideration. Staking Ethereum (ETH) can provide stable bonus while waiting for the investment to appreciate in value over the coming years. Still, it is essential to stay mindful of both short-term economic factors and regulatory developments, which have become a frequent occurrence in the cryptocurrency landscape.
As the Ethereum (ETH) network persists to evolve and attract more participants, monitoring these trends and understanding the capacity implications will be critical for investors and enthusiasts alike.
Ethereum (ETH) Struggles with Crucial Resistance at $1,840 Level – What Should Investors Expect?
As of now, Ethereum (ETH) is encountering numerous hurdles near the critical $1,840 resistance level against the United States Dollar. The price remains below $1,810 and the 100-hourly Simple Moving Average, indicating a challenging situation.
On the hourly chart of ETH/USD, a whole lot of bearish tendency line is taking shape, with resistance near $1,805. To regain positive tendency momentum, Ethereum (ETH) has to surpass the barriers at $1,825 and $1,840.
Regardless of struggling to break through resistance levels at $1,840 and $1,850, Ethereum (ETH) remains in a consolidation phase, similar to Bitcoin. It has managed to stay over the $1,785 level of support, with a recent low of $1,791.
As of now, Ethereum (ETH) is gradually recovering and moving upward, surpassing the 23.6 percent Fibonacci retracement level. Immediate resistance is expected near the tendency line zone, followed by $1,810 and the 100-hourly Simple Moving Average.
If these barriers are overcome, Ethereum (ETH) may experience a potential boost towards $1,920 and $2,000. Nonetheless, failure to breach the $1,810 resistance could result in a further downward movement towards support levels at $1,785, $1,770, and possibly $1,720 and $1,700.