Key Points
Ethereum’s Upcoming Dencun Upgrade
Grayscale experts are attributing the recent increase in Ethereum prices to an impending technological improvement.
Grayscale research analyst, William Ogden Moore, suggested in a February 23 report that the upcoming Dencun upgrade of Ethereum is likely behind the rallies in Ethereum prices.
According to CoinMarketCap, Ethereum has seen a 34% rise in the last 30 days and a 28% increase year-to-date, as per TradingView data.
The Dencun upgrade of Ethereum is scheduled for March 13, 2024.
This upgrade represents a significant advancement and could potentially enable Ethereum to compete with faster chains in the Smart Contract Platforms Crypto Sector, such as Solana, in terms of scalability.
Moore believes the recent price performance is a reflection of the market’s anticipation of this upgrade.
What Dencun Promises
The Dencun upgrade promises to increase throughput and decrease transaction costs.
This would enable users to spend less on gas fees and carry out more transactions on Ethereum’s mainnet and layer-2 scaling solutions like Arbitrum.
Developers are planning to achieve this major overhaul through proto-danksharding, which involves the introduction of data blobs.
Moore’s report suggests that if Ethereum can offer cheaper fees, it could capture a larger share of the smart contract business from competitors like Solana.
This could potentially unlock a multi-billion market tied to real-world assets.
Grayscale’s bullish outlook on Ethereum and its blockchain aligns with the investment firm’s bid for a spot exchange-traded fund, following its successful GBTC conversion last month.
As reported by Yahoo Finance, the company aims to do the same with its Grayscale Ethereum Trust (ETHE), which holds over $7 billion in assets under management (AUM).
The U.S. SEC has postponed a decision on Grayscale’s application until May, along with several other issuers.
