Ethereum ETH: Prepares for Dencun Upgrade Amidst Price Resurgence

After Bitcoin Euphoria: All Eyes on Ethereum ETFs, Will They Be Approved?

Ethereum’s price has climbed to around $3,800 this week, nearing its previous all-time high, driven by growing excitement about the upcoming Dencun network upgrade on March 13th and increasing speculation that the SEC may finally approve an Ethereum ETF this year.


Nearly $200 million worth of Ether was burned last week, reducing the circulating supply of the cryptocurrency.
Ethereum’s upcoming Cancun-Deneb (Dencun) upgrade on March 13th aims to improve scalability and reduce transaction fees.
Ethereum price has rallied recently to around $3,800 in anticipation of the Dencun upgrade and speculation about a possible Ethereum ETF approval.
Whales are accumulating Ether while smaller wallet holders seem to be taking profits after the recent price surge.
Dencun will introduce “blob transactions” via EIP-4844 that could compete with layer-2 rollup solutions by allowing large amounts of data to be transferred more cheaply.

Nearly $200 million worth of Ether was burned last week, reducing the altcoin’s circulating supply and likely contributing to its price surge.

Dencun is one of Ethereum’s most important upgrades ever, introducing “proto-dank sharding” via EIP-4844. This implements innovative “blob transactions” that can carry large data payloads far more cheaply than regular Ethereum transactions.


Based on testnet trials, these blob transactions could cost as little as one-fifth the price of standard call data transactions.

This has huge implications, as it opens up an entirely new paradigm for layer-2 scaling solutions to build upon. By reducing fees for data-heavy transactions, blobs could compete with existing layer-2 rollup platforms like Arbitrum and Optimism.

While rollups are unlikely to become obsolete given their superior scalability and security, the potential for new blob-based architectures to syphon off some user activity poses an uncertain challenge.

Ethereum’s price run has largely been fueled by whales accumulating more ETH, while smaller retail holders appear to be taking profits. This distribution trend often precedes further bull runs as institutional money flows in.

Investors are betting not just on Dencun, but also the possibility that the SEC greenlights a Spot Ethereum ETF by its May 23rd deadline. Approval could unleash huge institutional demand.

The success of layer-2 platforms also continues unabated, now locking up over $36 billion in assets and highlighting robust ecosystem growth.

Arbitrum leads with nearly $16 billion locked, enjoying first-mover advantage. But the coming months may see competition heat up if innovative blob architectures emerge from the ashes of Dencun.

With Ethereum hovering close to reclaiming its former highs, the stakes seem higher than ever. Dencun promises to supercharge scalability and reduce fees, but could also spark unintended consequences as new scaling approaches emerge.

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