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- Vitalik Buterin wants ETH valued for censorship resistance and security, not fee burning, as median fees fell from 35 cents to 3.5 cents this year.
- Democrats control Congress, with Warren tipped to chair Senate Banking, and analysts expect more crypto scrutiny despite a pro-crypto majority count.
- Bitcoin fell 4.5% to about $74,300 and ETH fell 6.3% to $2,117 on the week.
Ethereum’s creator wants the market to value ETH as a store of value rather than a fee-burning machine, just as crypto gets through a rough week. Prices fell after the US midterms put Democrats in control of Congress, and the $6.3 billion Binance hack kept security in the spotlight.
Why Vitalik Is Rethinking ETH’s Pitch
In a thread, Vitalik Buterin argued that the idea of ETH as a fee-burning token was never as strong as it looked, and that chasing it would hurt Ethereum’s decentralization and resistance to capture. He wants its value to rest on censorship resistance, open source, privacy and security, qualities he expects to matter more as AI disrupts industries.
The numbers help explain the shift. The 2021 EIP-1559 upgrade fueled the “ultrasound money” story, but median transaction fees fell from 35 cents to 3.5 cents between January and October, even as daily transactions rose by more than half.
Reaction split along familiar lines. Bitcoin advocate Dan Held mocked it as another narrative pivot and questioned whether a protocol with shifting monetary policy can be sound money. Supporters note that issuance policy hasn’t changed since the 2022 Merge, and every tweak since has cut issuance. Solana co-founder Anatoly Yakovenko agreed that fees can’t be the product.
A Democratic Congress Changes Washington’s Crypto Math
Crypto super PACs spent $176 million across 100 seats, including $64 million in a failed attempt to keep Sherrod Brown out of the Senate. Stand With Crypto counts 50 pro-crypto senators against 33 opponents, and 241 House members against 106.
Even so, Brown is likely headed to the Senate Agriculture Committee, and Elizabeth Warren is tipped to chair Banking. Kyle Bligen of the Decentralization Research Center expects significantly more scrutiny. Democrats are reportedly weighing a broader market structure bill built on Maxine Waters’ proposals. The CLARITY Act could still return, but only with much tougher ethics provisions aimed at President Trump.
Also Read: Bitcoin Developer Wants Quantum Thieves to Pay for Their Own Trap
Prices Fall and Security Stays in Focus
Bitcoin slipped below $76,000 and ended the week down 4.5% near $74,300. Ether fell 6.3% to $2,117, XRP dropped 5% to $1.11, and total market cap sits at $2.49 trillion. The TRUMP memecoin lost a third of its value, the worst performer in the top 100.
Binance says North Korean hackers first got in during June through a tampered installer while an employee set up an AI coding tool. Fake recruiters followed in September, and on Oct. 20 the attackers used an internal AI tool to reach the wallet-signing service. Grayscale’s Zach Pandl called the hack a likely temporary setback. Meanwhile, THORChain restarted most swaps on Nov. 4 despite an FBI warning, after Chainalysis found it had already processed over $46 million of hacked funds. Binance is also closing French accounts on Dec. 31, and Gnosis Pay disclosed a data breach.
What to Watch
Ethereum developer Justin Drake is targeting December 2028 for the post-quantum transition, a year ahead of schedule. But the Glamsterdam upgrade is delayed indefinitely over eight smart contract invariants. Whether Buterin’s new narrative sticks may depend on how quickly the roadmap moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
