Ethereum Surpasses $4,000 Mark Ahead of Dencun Upgrade

Ethereum has surged past the $4,000 mark ahead of its eagerly awaited upgrade known as Dencun, scheduled for this Wednesday. This upgrade is poised to tackle gas fees, a persistent issue for scaling networks.

Combining elements from previous upgrades Cancun and Deneb, Dencun aims to elevate Ethereum’s scalability, security, and user experience. Notably, the Dencun hard fork will introduce nine Ethereum Improvement Proposals (EIPs), with proto-danksharding under EIP-4844 expected to slash transaction fees and hasten processing speeds.

Coming about a year after the Shanghai upgrade, Dencun is touted as one of the most significant overhauls to the Ethereum network since the Merge. Its primary focus lies in fortifying the network’s layer-2 scaling solutions, which are vital platforms constructed atop the Ethereum blockchain to augment its transaction capabilities.

While the Dencun upgrade won’t directly impact mainnet gas fees, it’s anticipated to incentivize a higher adoption rate of layer-2 networks among users. Furthermore, the upgrade encompasses EIP-7044, empowering validators and stakers to establish conditions for exiting their staking positions, thereby bolstering security measures and providing additional flexibility.