Bittime - the price of ETH(Ethereum) skyrocket after the Dencun upgrade? The crypto world is abuzz with talk about the Dencun Upgrade on Ethereum. This is especially good news for Layer 2 protocol users. However, it is worth taking a closer look at the true impact of the Dencun Upgrade on Ethereum as a whole.
The heart of Dencun Upgrade is a technology called proto-danksharding. This technology comes from Ethereum Improvement Proposal (EIP) 4844 which aims to make using Ethereum cheaper through better data and transaction management.
New Direction for ETH Price: Scalability and Collaboration
Max Wadington of Fidelity Digital Assets Research provides a deeper look. He stated that the Dencun Upgrade changed Ethereum's focus. Today, Ethereum not only wants to provide a better experience for its users, but also wants to collaborate more efficiently with other blockchains. This shows the increasingly mature development of Ethereum, with the target of increasing scalability and efficiency.
The euphoria accompanying the Dencun Upgrade has sparked activity in the DeFi Layer 2 token market. This can be seen from price movements and significant spikes in trading volume in tokens such as Mantle (MNT). This market reaction reflects community expectations of the upgrade's potential to lower transaction costs, thereby increasing the attractiveness and viability of Layer 2 solutions .
Check Today's Crypto Market:
Dencun Upgrade: Pivotal Point, Will ETH Price Skyrocket?
Beyond short-term market optimism, the Dencun Upgrade has broader significance for Ethereum, including its native token, Ether. Analysts from Coinbase and other platforms argue that the upgrade could trigger a re-evaluation of Ether's position in investment portfolios.
This is driven by Ethereum's important role in the DeFi and NFT sectors, as well as speculation regarding the presence of Ether-based spot ETFs in the United States.
"Dencun Upgrade on Ethereum started initial testing on Wednesday and is expected to implement EIP-4844 (EIP is an abbreviation for Ethereum Improvement Proposal) in the coming months. EIP-4844 itself is predicted by ETH observers to help reduce network fees by up to 90% or more," Coinbase argued.
With this analytical point of view, the Dencun Upgrade cannot be seen as just a technical update. This is a strategic pivotal point for Ethereum. The Dencun Upgrade affirms the blockchain's continued commitment to improving scalability and efficiency.
This is crucial to maintaining Ethereum's competitiveness and fulfilling its promise as a decentralized platform for a wide range of applications, beyond just cryptocurrency transactions.
Impact of Dencun Upgrade on ETH Price
Analysts predict that the Dencun Upgrade could have a positive impact on the price of ETH. Let's further analyze the reasons behind this prediction.
Improved Scalability
EIP-4844, which is the core of the Dencun Upgrade, is believed to be able to reduce Ethereum transaction costs significantly. This can attract more users and developers into the Ethereum ecosystem, ultimately increasing demand for ETH.
Better Layer 2 Integration
The Dencun Upgrade paves the way for better integration between Ethereum and Layer 2 solutions. Layer 2 solutions are currently developing rapidly and offer better scalability compared to the Ethereum blockchain itself. With better integration, activity at Layer 2 could have a positive impact on the price of ETH.
ETH Utility Improvements
Dencun Upgrade doesn't just focus on financial transactions. EIP-4844 enables cheaper data storage on the Ethereum blockchain. This could pave the way for a variety of new applications built on top of Ethereum, thereby increasing ETH's utility and potentially driving its price up.
ETH (Ethereum) Price Today
Source: Bittime.com
On March 18, 2024, the price of ETH (Ethereum) was at $3,609 per coin, up 1.56% in the last 24 hours.
Also Read How to Buy Crypto:
Negative Potential of Dencun Upgrade, Could ETH Price Drop?
Even though the prospects are bright, the Dencun Upgrade is not a guarantee of an automatic increase in ETH prices. Several potential factors could still hinder price increases, such as:
Delay in Implementation
Blockchain development is a complex process. It is possible that the Dencun Upgrade may experience unexpected technical delays or obstacles. This can cause negative sentiment in the market and impact the price of ETH.
Competition from Other Blockchains
Ethereum isn't the only player in the blockchain game. Other blockchains such as Solana and Cardano are also working to improve their scalability. The presence of powerful competitors may limit the growth potential of Ethereum and the price of ETH.
Macroeconomic Conditions
Crypto asset prices, including ETH, are also influenced by global macroeconomic conditions. In the event of an economic recession or widespread political uncertainty, this could lead to price corrections across the crypto market, including ETH.
Conclusion
The Dencun Upgrade is a significant step for Ethereum in overcoming scalability challenges and improving efficiency. This upgrade is predicted to have a positive impact on the price of ETH, both in the short and long term.
However, it is important to remember that investing in crypto assets always comes with risks. Factors such as implementation delays, competition from other blockchains, and global macroeconomic conditions may influence the price of ETH. Therefore, investors need to conduct in-depth research and consider their risk tolerance before investing in ETH.
Check Crypto Prices Today:
How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethereum (ETH) is available on Bittime with the market pair ETH/IDR . To be able to buy ETH/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor price chart movements for Ethereum (ETH), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Bitcoin Mining in the Halving Era: Gloomy Future or Bright Light?
A New Era of Crypto Lending: Kelexo (KLXO) Attracts the Attention of Tether (USDT) and Ripple (XRP)
ETH Price: 15,000 Ethereum Suddenly Change Hands During Dencun Upgrade?
DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.