While a possible timely approval of the ethereum ETF is looming, Grayscale experts believe an upcoming technological improvement is behind the recent price increases.
Grayscale research analyst William Ogden Moore said in a Feb. 23 article. eth-2.0″ target=”_blank” rel=”noreferrer noopener”>report that ethereum's Dencun upgrade has likely caused rallies in Ether (eth) prices. According to CoinMarkerCap, eth is up 34% in the last 30 days and 28% year-to-date according to TradingView.
ethereum's Dencun upgrade, scheduled for March 13, 2024, represents a big step forward and could help ethereum compete in terms of scalability with faster chains in the crypto sector of smart contract platforms, such as Solana. We believe recent price performance reflects market anticipation of this improvement.
William Ogden Moore, Grayscale Research Analyst
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Dencun promises to improve performance and reduce transaction costs, allowing users to spend less gas fees and make more transactions on the eth mainnet and layer 2 scaling solutions like Arbitrum.
The developers plan to achieve this key overhaul through proto-danksharding, introducing blobs of data.
Moore's report suggests that ethereum could gain a larger share of the smart contract business from competitors like Solana if the network can offer cheaper fees. Moore opined that this could unlock a multi-trillion-dollar market tied to real-world assets.
If ethereum can simply become more competitive in performance and cost, it could position itself to capture smart contract applications that demand high levels of security and censorship resistance, such as stablecoins or tokenized financial assets.
William Ogden Moore, Grayscale Research Analyst
Grayscale's bullish outlook on eth and its blockchain complements the investment firm's bid for a spot exchange-traded fund following its successful conversion to GBTC last month. According to Yahoo Finance, the company hopes to do the same with its Grayscale ethereum Trust (ETHE), which holds more than $7 billion in assets under management (AUM).
The US SEC delayed a decision on Grayscale's application, along with several other issuers, until May.
<img loading="lazy" decoding="async" width="1024" height="621" src="https://crypto.news/app/uploads/2024/02/Screenshot-272-1024×621.png” alt=”Grayscale: ethereum Dencun Upgrade Drives Price Higher – 1″/>
