Following Bitcoin’s new all-time high, the crypto community has been buzzing with theories and predictions not only about the top cryptocurrency but about other coins as well.
Ethereum, the second largest cryptocurrency (by market cap) has also been a talking point and headline.
Ethereum news over the past few days as been awash topics such as the potential effect of Bitcoin’s new ATH on Ethereum, the upcoming Dencun upgrade and long-term price predictions. We have rounded up the top stories in Ethereum news over the past few days for you.
Dencun – Ethereum’s Solution to High Gas Fees?
The Dencun update is set to be Ethreum’s largest since The Merge in September 2022 and Shapella in April 2023. The upgrades respectively facilitated the move from a proof-of-work (PoW) consensus to proof-of-stake (PoS) and made withdrawals of staked Ether possible. It is expected to go live on March 13 at around 13:55 UTC. Here is what we know about the updrage so far.
First of all “Dencun” is a merging of “Deneb” and “Cancun”, two network updates that collectively account for nine Ethereum Improvement Proposals (EIPs). It will activate EIP-4844, also called proto-danksharding, which is expected to improve the Ethereum blockchain’s capacity to handle data from layer-2 (L2) networks.
The upgrade will result in significantly cheaper fees for L2 rollups and it is expected that the majority of Ethereum’s onchain activity will migrate to L2s. This aligns with Ethereum’s target of being able to process millions of transactions per second.
Analyst Max Wadington writes in a research report by Fidelity Digital Assets: “Ethereum’s improvement as a database unveils the opportunity for near-zero transaction fees for users of layer 2’s.”
Wadington adds that users of the base Ethereum network may not benefit as much from the software update as Layer 2 users.
“In the short term, users who wish to benefit from this fee change must sacrifice some decentralization and security by transacting on layer 2’s instead of Ethereum,” he said.
The Dencun upgrade has been in the works for several years, with Ethereum co-founder Vitalik Buterin hinting at it as far back as 2019. It was slated to take place late last year but could not proceed due to engineering concerns by developers.The update has so far been tested on three separate test networks and performed generally well.
Members of the Ethereum community are looking forward to the event and are joining livestreams counting down to the upgrade.
“We are making sure all our client and bootnodes are fully updated, and ready for fork,” said Barnabas Busa, a DevOps engineer at the Ethereum Foundation. “Our monitoring infrastructure is scaled up to -ensure we don’t miss anything important.
(Ethereum core developer Tim Beiko’s post on X:
Ethereum Price Predictions
As of March 13, Ethereum was currently trading at $4,040 up about 7% over a week. It is expected to rise higher with the increased anticipation for Ethereum ETFs and the Dencun upgrade.
According to this Forbes report, Ethereum could rise to $4,500 by the end of the month. Another report puts the coin’s price at $5,000 by the end of the year. CoinDCX predicts that 2024 a strong end to the year price-wise could serve as a stepping stone for the asset’s upward movement.
In addition, going by historical market data, a Bitcoin bull run could spell price surges for Ethereum as well. In 2021 for example, when Bitcoin gained 66%, Ethereum performed far better, gaining almost 400%. With the ongoing interest in spot Bitcoin ETFs and the upcoming Bitcoin halving – both of which could translate into green candles for Bitcoin – Ethereum could continue rising.
While experts agree that the asset is unlikely to surpass Bitcoin’s price long-term, it has the potential to rival the top cryptocurrency’s market capitalization largely owing to its uncapped supply.
