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The Ethereum Dencun upgrade is now live, triggering excitement in the Ethereum and larger crypto communities. A key impact of this major upgrade will be to reduce fees on the network, helping to ease congestion and improve scalability.
The Dencun upgrade brings on several changes, the most notable of which is the implementation of ephemeral data blobs with EIP-4844, known as "protodanksharding," which will help cut L2 transaction fees and thus usher in a new era of Ethereum scalability.
Dencun activated! First block is in! 🎉
— terence.eth (@terencechain) March 13, 2024
As the Ethereum community celebrated the much-anticipated Dencun upgrade, a major ETH transfer caught the market's attention. A whale, an individual or entity holding large amounts of cryptocurrency, deposited 15,000 ETH on crypto exchanges Binance and Bitfinex.
The deposit of such a large amount of ETH to exchange typically indicates a potential sale; thus, this unexpected move has led to speculation and intrigue within the crypto community, particularly as it coincides with the launch of the Dencun upgrade.
According to Lookonchain, a whale unstaked 15,078 ETH worth $60.3 million and deposited it with Binance and Bitfinex.
A whale unstaked 15,078 $ETH($60.3M) and deposited it to #Binance and #Bitfinex, possibly selling to repay the debt.
— Lookonchain (@lookonchain) March 13, 2024
He has a debt of 110M $DAI on #Spark and the health rate is 1.57.https://t.co/vSj2NxgglN pic.twitter.com/enFn91xckD
What makes the move quite unusual is that the Dencun upgrade is expected to act as a positive catalyst for the ETH price, which leads to speculation about the whale's confidence in the upgrade's immediate impact on the market.
However, this might not be, as Lookonchain speculates that the whale may possibly be selling their ETH holdings to repay the debt. The whale has a debt of 110 million DAI on Spark and a health rate of 1.57.
Crypto data tracker, Whale Alert reports significant ETH movement before and at the Dencun upgrade launch. A total of 10,132 ETH worth $41,011,423 was transferred from an unknown wallet to Kraken exchange.
Hours before the Dencun upgrade launch, 18,560 ETH worth 75,324,186 were transferred from Binance to an unknown wallet. A total of 244,550 ETH worth $992,516,261 and 50,000 ETH worth $202,898,923 were also moved between unknown wallets, as well as other large transactions.
As the dust settles, the community eagerly watches to see the Ethereum Dencun upgrade's potential impact on the market and the ETH price, which remains largely unknown.