The Ethereum price surpassed the key levels at $3000 after a prolonged consolidation of over 24 months. This generated a bullish wave across the markets and elevated the levels of the majority of altcoins. Unfortunately, it appeared to be a short-lived rally as the bears quickly grabbed the opportunity to cash out on the rally. This has caused a minor drop, while the ETH price is struggling hard to sustain over $2900. However, in some days, the Ethereum network is expected to undergo a major upgrade, which may turn the table for the ETH price rally.
As known to all, Bitcoin is expected to undergo a halving event in April, but before that, the Ethereum network is about to get upgraded on March 13. The Dencun upgrade is expected to be a game changer for the platform as it addresses the issue related to transaction fees, which continue to soar despite the merger that was executed in 2022. The upgrade is expected to increase the processing capacity to over 100,000 TPS, which may reduce transaction costs.
Who Would Benefit from this Upgrade?
The upgrade may introduce ‘Blobs’, which is a temporary data storage mechanism that addresses data availability for Ethereum rollup solutions. This could increase the throughput of layer-2 solutions, allowing lower fees even in times of high network congestion. However, they ensure that no permanent space is locked over the network.
With this, the native tokens of the platforms will benefit because they aim to process unlimited and affordable transactions within a secured environment. Below are the projects that may benefit from this upgrade.
Apart from the layer-2 solutions, the staking and staking protocols may also have a huge advantage. Nearly 70 million ETH is already staked, which emphasises the confidence of the traders in the cryptos. Besides, staking allows the liquid staking token holders to stake their tokens on the Eigen layer.
On the whole, it appears to be a good time to be bullish on Ethereum as the network is approaching the pivotal Dencun upgrade. Besides, the spot ETF may also have a significant impact, which may keep the ETH price rally elevated.
