Ethereum’s first multi-client testnet, Goerli, will be phased out on April 13, 2024, following the success of the Dencun upgrade on the mainnet. Users & developers are required to migrate to Sepolia or Holesky as soon as possible, lead developer Tim Beiko warned. Since the Goerli testnet was permissionless, validators from the clients and testing teams played an important role in its operation and maintenance.
Now that the testnet will be discontinued, the validators’ abrupt exodus ahead of the deadline might affect the stability of the network. The team plans to utilize this opportunity to test certain network parameters and features. These include testing delayed finality [the time it takes for transactions to be considered final], inactivity leaks [penalties for inactive validators], and mass slashings [penalties for validators behaving maliciously or incorrectly].
While the Dencun upgrade went without a hitch, the ETH community is grappling with developments surrounding the regulatory front. Following the SEC’s approval of spot Bitcoin ETFs, crypto proponents pinned their hopes on similar ETF approval for altcoins, especially Ethereum. But the latest insights from online punters revealed that chances of green-lighting Ethereum ETFs looked slim as the SEC continues to maintain a radio silence on the issuers.
With the recent concerns raised by the Democratic senators, it could further bolster the SEC’s stance towards spot crypto ETFs. The US top market watchdog has spent a great deal on preventing BTC ETFs and has publicly attributed the approval to the court order [won by Grayscale].
SEC’s Stance on Ethereum ETF
One of the factors contributing to the SEC’s reluctance towards Ethereum ETFs was the correlation between the ETH spot and the future market, a key indicator for evaluating the suitability of ETFs. Coinbase legal expert Paul Grewal argued that there is evidence of digital asset commodities, apart from bitcoin, demonstrating market quality metrics that exceed even the largest traded equities.
For example, ETH’s spot market is deep and liquid; only two S&P 500 stocks have higher notional dollar trading volume. Only one S&P 500 stock has lower adjusted bid-ask spreads. And when compared to bitcoin, ETH’s future and spot market demonstrate EXACTLY the same type of high and consistent correlation that would enable market surveillance.
