Ethereum Dencun Upgrade Launch Boosts ETH Price, Eyes 90% Fee Reduction
07 Febrero 2024 - 1:37PM
NEWSBTC
Ethereum (ETH) has made significant strides in its 2024 roadmap
with the successful launch of the Dencun upgrade on the final
Holesky testnet. This is seen as a crucial step towards
deploying the upgrade on the mainnet, signaling Ethereum’s progress
in improving transaction efficiency, and scalability and reducing
transaction fees by up to 90%. As a result, ETH has surged 2.9% in
the last 24 hours, breaking its previous downtrend. Ethereum Dencun
Upgrade The Dencun upgrade was first activated on the Sepolia
testnet in January 2024, following its deployment on the Goerli
testnet. This upgrade aligns with Ethereum’s broader strategy to
enhance scalability and reduce transaction costs for its
users. Related Reading: Cardano Founder Takes Jab At Solana
After Major Outage Introducing the concept of “proto-danksharding,”
Dencun aims to decrease transaction costs for layer-2 blockchains
and address scalability challenges, paving the way for the eventual
implementation of “danksharding” for further benefits. Once fully
implemented, Dencun is expected to significantly increase
Ethereum’s transaction processing capacity, potentially enabling
the network to handle over 100,000 transactions per
second. According to the network’s development team, this
scalability enhancement is crucial for supporting the growing
ecosystem of decentralized applications (dApps) and users on
Ethereum. Furthermore, Dencun will have notable technical
improvements, such as the introduction of ‘blobs,’ which reduce the
cost of rollups on the Ethereum mainnet by compressing transaction
data off-chain. By caching data needed for short-term
transaction verification, blobs aim to minimize storage and
processing requirements, further enhancing the network’s
transactional capabilities. Anticipation For ETH’s Market Impact
The successful implementation of the Dencun upgrade holds the
potential for significant implications on ETH’s market value,
driven by a combination of factors. Firstly, the upgrade’s enhanced
network capabilities, including boosted transaction processing
capacity and reduced costs, are expected to attract more developers
and users to the Ethereum ecosystem. With improved
scalability and lower transaction fees, Ethereum could become a
more attractive platform for building dApps and conducting
transactions. This increased utility and demand for Ethereum could
have a positive impact on its market value as more participants
seek to acquire ETH tokens. The perceived reliability and forward
momentum resulting from the successful implementation of Dencun may
attract more investors to consider Ethereum as an investment
opportunity. The increased interest and demand for ETH tokens
driven by this positive sentiment can contribute to potential price
appreciation. Lastly, the anticipation of Dencun’s benefits and the
reactions to its successful implementation may lead to short-term
price volatility, with investors adjusting their positions based on
their expectations of how the upgrade will impact Ethereum’s
functionality and market position. Related Reading: Microstrategy
Buys More Bitcoin: Here’s How Much Profit It Holds Now All of these
developments could have a significant impact on ETH’s price
trajectory and position the token in a long bullish trend, if this
momentum continues to be capitalized on, the next barrier at $2,450
could be easily surpassed, potentially sending ETH to new
highs. While the long-term implications remain to be seen,
this is a positive development for ETH bulls as the network has
lacked significant catalysts and has been involved in a significant
price correction for the past 3 weeks. With activations on the
Sepolia and Goerli testnets already completed, the final testnet
deployment, Holesky, was initially scheduled for February 7, 2024.
However, it has now been rescheduled for March 2024. Featured
image from Shutterstock, chart from TradingView.com
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