Grayscale explained the rise in Ethereum prices with the upcoming Dencun update

  • The Ethereum price has increased amid the upcoming Dencun update, says Grayscale Investments analyst William Ogden Moore.
  • It is expected to increase throughput and reduce network transaction costs.
  • Dencun is scheduled for release on March 13, 2024.

Leading analyst at Grayscale Investments William Ogden Moore said that the rise in the Ethereum price occurred amid expectations of Dencun being updated in March 2024.

The asset’s position was also strengthened by the growing interest in liquid staking, the overall increase in network profitability and the potential approval of the Ethereum-ETF in May, Moore noted.

“The Dencun update to Ethereum, scheduled for March 13, 2024, represents an important step for the development of the ecosystem. We believe that the positive change in the asset price reflects market expectations,” he said.

According to the expert, Dencun can increase throughput and reduce network transaction costs. According to the report, this will make Ethereum more competitive in the market and potentially allow the ecosystem to become relevant in the real world tokenized asset (RWA) market.

We previously covered this update in detail in a separate article:

CoinEx experts believe that the hard fork will have a positive impact not only on the Ethereum ecosystem, but also on the industry as a whole.

Let us remind you that on February 20, the Ethereum 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.

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On January 25, the US Securities and Exchange Commission (SEC) delayed consideration of Grayscale’s application to list a spot Ethereum ETF until March 10. Standard Chartered Bank experts believe that the regulator may approve the launch in May 2024.