- A bullish momentum is building on Ethereum as the Dencun upgrade approaches.
- ETH crossed $3,000 for the first time in nearly two years after a multi-week rally.
- Guy Turner believes the upcoming upgrade is a boost for Ethereum that would enable it to keep up with competitors.
A bullish momentum is building on Ethereum as the blockchain network approaches its next significant network improvement, the Dencun upgrade. In a recently uploaded video, Guy Turner, host of Coin Bureau, highlighted the upgrade’s potential impact on some of the renowned Layer-2 protocols on Ethereum.
According to Turner, the upcoming upgrade is a data availability improvement that introduces Proto Danksharding to Ethereum. He noted it as a process that Ethereum will use to break its blockchain into smaller portions to provide faster and cheaper transactions.
Meanwhile, the Coin Bureau host also considers the upcoming upgrade a boost for Ethereum that would enable it to keep up with competitors. Turner believes it would free Ethereum from the existing setbacks of slow transactions and low scalability. Hence, he thinks the Dencun upgrade will have a bullish impact on several Ethereum Layer-2 projects.
To further explain his view, Turner identified Arbitrum as one of the potential beneficiaries of the upcoming upgrade. He described it as an optimistic roll-up solution for increased throughput and reduced fees for Ethereum transactions. He also mentioned other notable Layer-2 projects like Optimism, Immutable, and Polygon as blockchain projects that will benefit from the Dencun upgrade.
From an overall perspective, crypto users expect the upcoming upgrade to affect Ethereum’s market value in a significant way. Many of them anticipate a consequential increase in Ethereum adoption that would positively impact the flagship altcoin’s price.
Ethereum traded for $2,936 at the time of writing after crossing $3,000 yesterday for the first time in nearly two years, according to data from TradingView. Many users believe it is a build-up to a more bullish movement that would be supported by a combination of factors, including the Dencun upgrade, a potential ETF approval, and the upcoming Bitcoin halving.
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