Ethereum’s Dencun Upgrade Could Propel ETH to New Heights
Ethereum is currently 50% away from its all-time high, but according to analyst Michaël van de Poppe, the upcoming technological upgrade known as Dencun could push ETH to higher prices. Van de Poppe believes that Ethereum’s second-largest asset is “waking up” in terms of price movements and could soon rally over 50%. The key driver behind this potential surge is Dencun, an upgrade to Ethereum’s blockchain architecture that aims to enhance transaction capacity and data availability.
“People underestimate the significance of the Dencun upgrade on Ethereum. If that’s fully applied to the ecosystem, chances are significant that Ethereum becomes the secure settlement layer the ecosystem is looking for. Good signs that it launched on the final testnet.” – Michaël van de Poppe
At present, ETH is trading around $2,400, but van de Poppe predicts that it could reach as high as $3,500. Ethereum’s all-time high was achieved in 2021 during the bull run, with a price of $4,878 per token.
Ethereum’s Dencun Upgrade Explained
The focal point of Ethereum’s Dencun upgrade is proto-danksharding, a feature outlined in EIP-4844. This add-on is expected to benefit layer-2 networks by introducing a new data field called a blob. L2s like Arbitrum, Optimism, and Polygon will be able to access more transaction bandwidth without longer processing timeframes on Ethereum’s main network. Developers have identified Dencun as one of the most important upgrades since the activation of staked ETH withdrawals following Ethereum’s transition to a proof-of-stake model.
The Dencun upgrade is scheduled to be deployed on March 13, pending any delays. It has already been successfully implemented on major Ethereum testnets such as Goerli, Sepolia, and Holesky.
In addition to the Dencun upgrade, another potential catalyst for ETH’s rally is the approval of a spot ETH ETF. However, decisions by the U.S. Securities and Exchange Commission regarding this asset class have been delayed until May, with individual commissioners expressing differing opinions.
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