Fxcrypt
The long-awaited Dencun upgrade for Ethereum has been officially scheduled for March 13th, drawing closer with each passing day. This upgrade is poised to significantly improve the performance of existing Layer 2 solutions, offering promising advancements for Ethereum’s ecosystem.
Within the Dencun upgrade, one notable feature is EIP 4844, introducing data blobs and laying essential groundwork for future sharding initiatives. The convergence of Dencun with the current excitement surrounding restaking, alongside the potential introduction of an Ethereum ETF, presents compelling catalysts for Ethereum’s growth. The anticipation surrounding this upgrade alone could have substantial impacts on the price of ETH and associated Layer 2 tokens.
According to a report by Bybit, institutions have been increasing their portfolio concentration in Bitcoin and Ether, with a notable emphasis on Ether due to the anticipated Dencun upgrade. Conversely, retail users show lower concentration in these assets, with a greater preference for altcoins.
ETH, currently trading above $3200, has demonstrated strong performance, boasting a nearly 35% rally year-to-date. This upward trend can be attributed to various factors, including the deflationary supply following the transition to proof-of-stake, decreasing levels of ETH held on exchanges, and increased staking activity.
In a significant milestone for spot Bitcoin ETFs, BlackRock’s spot Bitcoin ETF has surpassed $1 billion in trades in a single day, showcasing the potential impact of ETF approval on ETH price dynamics. BlackRock, a global leader in asset management, introduced its spot Bitcoin ETF earlier this year, providing investors with exposure to BTC without direct ownership or custody.
Fidelity_Nasir
