Amidst these developments, regulatory scrutiny intensified, with the SEC investigating the Ethereum Foundation and issuing a Wells notice to Consensys regarding MetaMask.

However, 2024 proved to be a mixed year for Ethereum, characterized by significant innovations alongside investor disappointment regarding ETH's price performance.

Despite the ETF approvals, ETH's price did not experience the same dramatic surge as Bitcoin's, remaining below its 2021 peak of $4,878.

The Dencun upgrade, which introduced 'proto-danksharding', significantly reduced transaction costs and improved efficiency on the Ethereum network.

Analysts now predict that Ethereum may need a model change to sustain price growth, as increasing value is being siphoned off by the growing use of layer-2 networks.

In July 2024, the SEC's unexpected approval of spot Ethereum exchange-traded funds (ETFs) marked a pivotal regulatory milestone for the cryptocurrency.

This approval was bolstered by support from BlackRock's CEO, Larry Fink, who highlighted the potential value of Ethereum ETFs, signaling a notable shift in institutional interest.

As a result of the ETF approvals, the SEC ceased classifying ETH as a security, acknowledging its decentralized nature, which could enhance its legitimacy in traditional finance.

Trump's election is seen as ushering in a pro-crypto shift within the SEC, which could benefit Ethereum projects amid ongoing regulatory challenges.

Although the SEC later sued Consensys for alleged unregistered securities sales, a judge dismissed the lawsuit in September 2024.

In a notable political move, President-elect Donald Trump announced a decentralized finance project named World Liberty Financial, built on Ethereum, further integrating crypto into mainstream politics.