Key Points
Ethereum [ETH] has recently seen a significant price increase. This is largely due to major developments within the Ethereum network. These developments are expected to further stimulate the growth of this cryptocurrency.
Upcoming Ethereum Network Upgrades
During the recent Ethereum developers’ call, ACDC #128, important updates were revealed. These updates are expected to shape the future of the network. The Dencun upgrade was the main focus of the call. All client teams, except lodestar, have finalized their software versions.
These software versions, including the lodestar candidate client, are currently being rigorously tested on a mainnet shadow fork. Flashbots, a key contributor, plans to release Dendon-ready MEV-Boost software early next week.
The Dencun mainnet activation is planned for 13th March. This emphasizes the need for validator node operators to quickly upgrade their EL, CL, and MEV-Boost software.
The Dencun upgrade is expected to have a significant impact. With Flashbots preparing to improve MEV-Boost capabilities, the Ethereum network is expected to become more efficient and secure. This could potentially positively influence market sentiment.
The Electra upgrade is another key development. Work on Electra has begun, which includes EIP 6110, EIP 7002, and EIP 7549. These proposals aim to improve validator deposits, triggerable exits in the execution layer, and reposition the committee index outside attestation.
The integration of these proposals into Electra will be determined by further refinement and consideration. This will ensure that these proposals do not delay other important code changes.
Discussions about reducing staking rewards have also begun. As the amount of staked ETH increases, stakeholders are considering reducing ETH issuance. This discussion is important as it shows the Ethereum community’s commitment to adjust and optimize network dynamics in response to changing conditions.
Despite these advancements, Ethereum’s price has seen a 2.63% decrease in the last 24 hours. Network growth for ETH has also declined, indicating a decrease in interest among new users.
The decrease in interest from new addresses could significantly affect the ability of ETH’s price to increase. Additionally, the velocity of ETH transfers has also decreased. This suggests a potential decrease in overall engagement, as it indicates a lower frequency of interactions around ETH.
