Crypto News- In the midst of speculation surrounding the approval of a spot ether ETF, Grayscale Investments offers a different narrative for Ethereum’s recent price climb. According to Grayscale’s latest report penned by Research Analyst William Ogden Moore, the anticipation surrounding Ethereum’s forthcoming Dencun upgrade takes center stage.
“We see the market’s enthusiasm driven by the impending upgrade,” Moore notes in the report released last Friday. Scheduled for March 13th, 2024, the Dencun upgrade promises enhanced throughput and reduced transaction costs, positioning Ethereum to rival faster chains like Solana in the Smart Contract Platforms Crypto Sector.
Grayscale: Ethereum Price Surge Fueled by Expectations of Dencun Upgrade
The report presents a bullish outlook for Ethereum, despite its underperformance in 2023 relative to its sector and competitors like Solana, which witnessed staggering growth. Grayscale’s optimism towards Ethereum isn’t surprising, considering their ongoing efforts to convert their Ethereum trust into a spot ether ETF, a move expected to gain SEC approval by May, following the recent nod to spot bitcoin ETFs.
Looking beyond the Dencun upgrade and ETF prospects, Grayscale highlights “net deflationary supply” and “network revenue generation” as additional factors driving optimism. Moreover, Ethereum’s potential to capture more smart contract business stands out.
“If Ethereum can enhance its throughput and cost competitiveness, it could corner smart contract applications seeking heightened security and censorship-resistance, such as stablecoins or tokenized financial assets,” Moore concludes.
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