Grayscale research analyst William Ogden Moore recently suggested that Ethereum’s upcoming Dencun upgrade is likely responsible for the recent surge in Ether (ETH) prices. According to CoinMarketCap, ETH has seen a 34% increase in the last 30 days and a 28% uptick year-to-date, as reported by TradingView.

Ethereum’s Dencun Upgrade and Price Surge

“Ethereum’s Dencun upgrade, scheduled for March 13th, 2024, represents a major step forward and could help Ethereum compete in terms of scalability with faster chains in the Smart Contract Platforms Crypto Sector, such as Solana. We believe that recent price performance reflects the market’s anticipation of this upgrade.” – William Ogden Moore, Grayscale research analyst

The Dencun upgrade, set to launch on March 13th, 2024, is expected to enhance throughput and reduce transaction costs on Ethereum’s mainnet and layer-2 scaling solutions like Arbitrum. This improvement could lead to lower gas fees for users and increased transaction capacity.

Developers aim to achieve this enhancement through proto-danksharding, introducing data blobs to the network. Grayscale’s report suggests that Ethereum could gain a larger share of the smart contract market by offering more competitive fees compared to rivals like Solana.

Grayscale’s Bullish Outlook on Ethereum

Grayscale’s positive stance on ETH and its blockchain aligns with the investment firm’s efforts to launch a spot exchange-traded fund, following the successful conversion of its GBTC last month. The company is looking to replicate this success with its Grayscale Ethereum Trust (ETHE), which currently holds over $7 billion in assets under management.

The U.S. SEC has delayed a decision on Grayscale’s ETF application until May, along with other issuers seeking approval for similar products.

Grayscale’s analysis and optimism surrounding Ethereum’s technological upgrades and market potential highlight the growing interest in cryptocurrencies and blockchain technology. Stay updated with the latest news and developments on Global Crypto News.

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