Ethereum (ETH) has regained its footing, reaching a value of $2,345 for the first time since the downturn that began on January 22nd, as reported by Santiment. The recent surge is seen as a promising sign for the overall health of the network.
Key metrics, including active addresses and network growth, indicate a notable uptick, suggesting increased activity and utility within the ecosystem. These factors are crucial in justifying the growing market capitalization of ETH, which currently stands at $2,337.61 as of the latest data. Over the past 24 hours, ETH has witnessed a 1.19% increase, with a nearly 5% rise in the weekly chart, showcasing a resilient comeback.
Analysts are voicing optimism, dubbing it the “Ethereum season.” A significant contributing factor to this positive sentiment is the anticipation surrounding the Securities and Exchange Commission (SEC) and its approach towards approving spot Ethereum exchange-traded funds (ETFs).
Insights from Standard Chartered Bank analysis suggest that the SEC is likely to adopt a similar stance as it did with spot Bitcoin (BTC) ETFs, with expectations high for approval by the initial final deadline of May 23. These positive indicators in both technical metrics and regulatory expectations are reinforcing the belief that ETH’s recent resurgence is more than just a temporary rebound, but rather a foundation for sustained growth in the near future.
Ethereum’s Journey Towards Proto-Danksharding
Simultaneously, Ethereum has achieved a crucial milestone with the successful deployment of its latest major upgrade, Dencun, on the Sepolia test network this Tuesday. This marks the second testnet deployment, with the Goerli testnet being the first earlier this month.
The Ethereum core developers are scheduled to initiate the upgrade on the third and final testnet, Holesky, on February 7th. Following a successful deployment on Holesky, the Ethereum team is expected to announce a mainnet launch date for Dencun.
One of the highly anticipated features that Dencun promises to bring is proto-danksharding, aimed at addressing scalability and reducing gas fees. This involves the introduction of a new, compressed data storage mechanism called “blobs.” According to Ethereum co-founder Vitalik Buterin:
A blob-carrying transaction is like a regular transaction, except it also carries an extra piece of data called a blob. Blobs are extremely large (~125 kB) and can be much cheaper than similar amounts of calldata.
The successful deployment of Dencun on the test networks signals a positive development for Ethereum as it inches closer to implementing groundbreaking features that could further solidify its position in the cryptocurrency market.
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