Ethereum (ETH) surpasses $2,486. The main cause of this large price movement is the increasing interest in Ethereum’s most recent network upgrade, the Dencun upgrade.
The successful rollout of this upgrade on the Holesky testnet recently garnered media attention, marking a significant milestone before its eventual deployment on Ethereum’s mainnet, scheduled for March.
The Ethereum development community has been working hard; earlier in January, tests were carried out on other testnets, such as Goerli and Sepolia.
The Ethereum network is about to see major improvements thanks to the Dencun upgrade. The goal is to increase the network’s transaction handling capacity by incorporating a new feature that uses “blobs.”
These blobs are made to effectively store a lot of data for a short time, lowering the total amount of storage space required.
With the Dencun upgrade, crypto analyst Michael van de Poppe has stated that he is bullish on Ethereum and has set a target price of $3,500.
According to him, the upgrade highlights Ethereum’s underappreciated status and could trigger a sizable price increase.
Ethereum is facing regulatory obstacles, particularly about the US Securities and Exchange Commission’s (SEC) approval of Ethereum-based ETFs, despite the positive sentiment in the market.
The US SEC has shown caution by postponing decisions on several applications for Ethereum ETFs, highlighting the regulatory challenges that come with brand-new investment vehicles in the cryptocurrency market.
The Dencun upgrade is expected to improve the network’s efficiency and draw in more users, so the Ethereum community is excitedly awaiting its integration into the mainnet.
Ethereum is still navigating regulatory obstacles, despite the optimism, which is indicative of the larger dynamics surrounding cryptocurrency adoption and investment.