"Hmm, maybe the price of ETH will go higher after the ETH Dencun upgrade?"
The second largest cryptocurrency Ethereum (ETH) finally managed to break through the $4,000 level when the upcoming ETH Dencun upgrade on March 13, 2024 is one of the most anticipated hard forks since Merge.
Dencun's ETH upgrade will be a milestone for layer-2 scaling solutions as it is expected to significantly reduce layer-2 network transaction fees as well as increase the overall scalability of ETH.
It is well known that the Dencun hard fork combines nine different Ethereum Improvement Proposals (EIP), where the upgrade combines the Cancun upgrade for the ETH execution layer and the Deneb upgrade for the consensus layer.
Cancun focuses on improving the way transactions are managed and processed at the execution layer while Deneb aims to improve the consensus layer which refers to how network participants agree on the state of the blockchain.
According to James Wo, Chief Executive Officer (CEO) and founder of Digital Finance Group said that the upgrade can significantly improve the scalability, efficiency and security of the entire ETH network.
However, the gas reduction promised for layer-2 users will not affect users who transact on the ETH mainnet, commented Max Wadington who is a research analyst at Fidelity Investments.
As of this writing, ETH price has rallied 6.56% to $4,060 in the last 24 hours with a market capitalization of over $487 billion then recorded an 11.13% gain over the past week.
