Author: Kazu Umemoto, Bankless; Compiled by: White Water, Golden Finance

As we gather this Thanksgiving, it’s the perfect time to reflect on what inspires gratitude—for the Bankless community, ether Fang naturally stands out like a star.

Ethereum has made huge new strides over the past year, from a game-changing Layer 2 upgrade to solidifying its place in mainstream finance.

However, beyond the technical and economic potential, what truly sets Ethereum apart is the vision that drives it forward and the passionate community that makes that vision a reality.

With that in mind, let’s take a moment to highlight 5 things to be grateful for in the Ethereum ecosystem in 2024.

In March 2024, Ethereum implemented the Dencun upgrade, which introduced original danksharding (EIP-4844) and revolutionized its scalability. At the heart of this innovation are “blobs,” a new type of transaction that allows L2 networks to publish bundled data to Ethereum at a fraction of the previous cost.

L2 transaction fees have since dropped significantly, with transaction fees reduced by 99% on some networks. This significant drop in costs opens the door to a wider range of users and applications, from DeFi to on-chain gaming. As a result, Ethereum’s vision of a truly accessible, decentralized future is closer than ever.

After the Dencun upgrade, the Ethereum community is not satisfied with the status quo. It has made considerable progress in the next major evolution, Pectra. Pectra is expected to be the most ambitious upgrade in Ethereum history, launching in early 2025 and implementing a wide range of Ethereum Improvement Proposals (EIPs) designed to enhance scalability, performance and user experience across the network.

For example, EIP-2537 will improve validator efficiency and reduce gas costs, while EIP-7594 will introduce Peer Data Availability Sampling (PeerDAS) to further optimize how L2 processes data. Another addition to Pectra is EIP-7702, which introduces a new transaction type that allows regular Ethereum accounts to temporarily transform into smart contract wallets.

This different transformation advances the Surge phase of the Ethereum roadmap, which is focused on scaling the OG smart contract platform to over 100,000 transactions per second, with major work already underway in recent months . Hats off to all involved!

Approved by the U.S. Securities and Exchange Commission (SEC) on July 22, 2024The first Ethereum ETF spot was purchased and trading began the next day. These products from major players such as BlackRock, Fidelity, and Grayscale offer U.S. investors a regulated and accessible way to trade without directly holding or managing ETH. Ethereum investments are available.

In addition, these ETFs have also attracted interest from states. The state of Michigan recently disclosed over $10 million in Ethereum ETF holdings, becoming the first state pension fund to invest in these products. The investment is a compelling signal that ETH is maturing, with mainstream institutions increasingly viewing it as a viable long-term investment.

Ethereum’s vibrant community is an important part of its ecosystem, a reality that was on full display at this year’s Devcon 7 event in Bangkok, where Ethereum contributions were once again highlighted depth and diversity. It’s this diversity that has brought us everything from fully on-chain generative art on Art Blocks to Justin Drake’s ambitious new Beam Chain proposal aimed at reinventing the Ethereum consensus layer.

This "big tent" collective of builders and dreamers striving for a better, decentralized future makes Ethereum more than just a platform, it's a movement. That's the real magic here.

Cutting-edge research, extensive writings on the future of Ethereum, large donations to noble causes, measured and inspiring comments on social media. Of course, it’s hard to think of another person who embodies excellence and humility quite like Ethereum founder Vitalik Buterin.

As speculative enthusiasm once again sweeps the cryptocurrency space, Vitalik serves as a beacon of clarity, urging the community to focus on Ethereum’s potential for meaningful and revolutionary innovation, rather than just a money play. He inspires action, not despair, and continues to guide Ethereum forward as a platform for open collaboration and social transformation. We are very lucky to have him.