Ethereum’s Price Targets All-Time High in March with the Eagerly Anticipated Dencun Upgrade

After months of thorough planning and research, the Ethereum (ETH) core developers are set to activate the Dencun upgrade on the Ethereum mainnet today. 

The much-awaited Dencun upgrade is the biggest update since Ethereum’s transition from proof-of-work (PoW) to the proof-of-stake (PoS) consensus method during the merge event and the Shanghai upgrade. As a result, Ethereum users can anticipate substantial changes, specifically within the extensive ERC-20 system.

Moreover, the Dencun upgrade will bring out several network changes but the most significant one will be on Ethereum’s consensus layers, commonly referred to as Layer Twos (L2). With the implementation of ephemeral data blobs via EIP-4844 or protodanksharding, Ethereum’s L2 networks will experience lower transaction fees. 

Looking at the development and consistent growth of the Ethereum network, it maintained its position as the leading network in smart contract and web3 ecosystem. Recent market data also indicates that the Ethereum network has more than $57 billion in Total Value Locked (TVL) and dominates the stablecoin market cap. 

As a result, Ethereum’s price has surged by more than 82% over the past month. Currently, Ethereum (ETH) is up by 1.37%, trading at $4,048 with a 24-hour trading volume of $26.49 billion. 

Meanwhile, there have been some huge last-minute on-chain movements within the Ethereum node validators which triggered some concerns. 

The Ethereum beacon chain shows real-time data on the network’s transactions. As per the latest data, it shows that 2,450 node validators have exited the Ethereum staking network within the last 48 hours withdrawing a total of 78,016 ETH, equivalent to $320 million. 

This type of rapid staking could mean an early indication of an impending bearish price movement for several reasons. One, in any PoS network, fewer coins means lower security and it increases the risk of network disruptions during market activities. 

However, with the total staking deposit currently over 31.3 million ETH, the recent withdrawals between March 11 and March 13 will not cause any disruptions in operational processes.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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