ETH price rises with Ethereum Dencun upgrade launched, Eyes fees reduced by 90%

Ethereum (ETH) has made significant progress on its 2024 roadmap. successful launch Dencun upgrade on final Holesky testnet.

This is considered an important step toward deploying the upgrade to the mainnet and represents Ethereum’s progress in improving transaction efficiency and scalability and reducing transaction fees by up to 90%. As a result, ETH surged 2.9% in the last 24 hours, breaking its previous decline.

Ethereum Denkun Upgrade

that much Denkun Upgrade After being deployed on the Goerli testnet, it was first activated on the Sepalia testnet in January 2024. This upgrade is consistent with Ethereum’s broader strategy to enhance scalability and reduce transaction costs for users.

By introducing the “proto-danksharding” concept, Dencun aims to reduce transaction costs and solve scalability issues in layer 2 blockchains, paving the way for the final implementation of “danksharding” for additional benefits.

Once fully implemented, Dencun will predicted It will significantly increase Ethereum’s transaction processing capacity, potentially allowing the network to process more than 100,000 transactions per second. According to the network development team, these scalability improvements are critical to supporting the growing network ecosystem. decentralized application (dApps) and Ethereum users.

Dencun will also make notable technical improvements, such as the introduction of ‘blobs’, which compress transaction data off-chain, reducing rollup costs on the Ethereum mainnet.

Blobs aim to minimize storage and processing requirements and further improve the transaction capabilities of the network by caching data needed for short-term transaction confirmations.

Expectations for ETH’s market impact

Successful implementation of a Dencun upgrade can have significant impacts, including: Market value of ETHIt is driven by a combination of factors.

First, the enhanced network capabilities through the upgrade, including increased transaction processing capacity and cost savings, are expected to attract more developers and users to the Ethereum ecosystem.

As scalability improves and transaction fees drop, Ethereum could become a more attractive platform for building and running dApps. work. 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 credibility and momentum resulting from Dencun’s successful implementation could lead more investors to consider Ethereum as an investment opportunity. This positive sentiment could lead to increased interest and demand for ETH tokens, contributing to a potential price increase.

Finally, expectations about the benefits of Dencun and reactions to successful implementation may be short-term. price volatilityInvestors adjust their positions based on expectations of how the upgrade will affect Ethereum’s functionality and market position.

All of these developments could have a significant impact on ETH’s price trajectory and could position the token in a long-term bullish trend. If this momentum continues to be leveraged, the next barrier of $2,450 could easily be surpassed and potentially push ETH to new highs.

While the long-term impact is not yet known, this is a positive development for the ETH bulls as the network lacks significant catalysts and has engaged in significant price corrections over the past three weeks.

With the Sepolia and Goerli testnet activations already complete, the final testnet deployment, Holesky, originally scheduled for February 7, 2024, has now been rescheduled for March 2024.

Featured image from Shutterstock, chart from TradingView.com

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