- Ethereum’s rate rose on the back of the upcoming Dencun upgrade, according to Grayscale Investments analyst William Ogden Moore.
- It is expected to increase throughput and reduce transaction costs of the network.
- Dencun is scheduled to be released on March 13, 2024.
William Ogden Moore, lead analyst at Grayscale Investments, said that Ethereum’s appreciation came amid expectations of a Dencun upgrade in March 2024.
Also contributing to the asset’s strength was the growing interest in liquid staking, the overall rise in network yields and the potential approval of the Ethereum-ETF in May, Moore said.
“The Dencun update for Ethereum, scheduled for March 13, 2024, represents an important step for the development of the ecosystem. We believe the positive change in the asset’s price reflects market expectations,” he said.
According to the expert, Dencun can increase bandwidth and reduce transaction costs of the network. According to the report, this will make Ethereum more competitive in the market and potentially allow the ecosystem to become in demand in the real-world tokenized asset (RWA) market.
We previously covered this update in detail in a separate piece:
CoinEx experts believe that the hardfork will favorably affect not only the Ethereum ecosystem, but also the industry as a whole.
Recall that on February 20, the Ethereum exchange rate tested $3000 for the first time since April 2022. Since the beginning of 2024, the asset has grown by 31%, according to TradingView. At the time of publication, the cryptocurrency is trading near $3030.
On January 25, the U.S. Securities and Exchange Commission (SEC) postponed consideration of Grayscale’s application to list a spot Ethereum-ETF until March 10. Experts at Standard Chartered Bank believe that the regulator may approve the launch in May 2024.
