- Dencun and Electra upgrades shape Ethereum’s development landscape.
- ETH’s price witnessed a minor correction, while network growth and velocity fell.
In recent weeks, Ethereum [ETH] experienced a substantial surge in its price, reflecting heightened market activity. Behind this surge was significant developments within the Ethereum network, poised to propel the growth of this cryptocurrency further.
New updates
The recent Ethereum developers’ call, ACDC #128, unveiled crucial updates set to shape the network’s future. The eagerly awaited Dencun upgrade took center stage, with all client teams (excluding lodestar) finalizing software versions.
These versions, along with the lodestar candidate client, are undergoing thorough testing on a mainnet shadow fork.
Flashbots, a key player, plans to release Dendon-ready MEV-Boost software early next week.
Notably, the Dencun mainnet activation is scheduled for 13th March, emphasizing the urgency for validator node operators to upgrade their EL, CL, and MEV-Boost software promptly.
Source: X
The impact of the Cancun upgrade is poised to be significant. With Flashbots gearing up to enhance MEV-Boost capabilities, the Ethereum network anticipates increased efficiency and security, potentially influencing market sentiment positively.
Another pivotal development on the horizon is the Electra upgrade. Developers have initiated work on Electra, encompassing EIP 6110, EIP 7002, and EIP 7549. These proposals aim to enhance validator deposits, triggerable exits in the execution layer, and reposition committee index outside attestation, respectively.
Further refinement and consideration of inclusion lists will determine their seamless integration into Electra without delaying other essential code changes.
In parallel, discussions on lowering staking rewards have emerged. As the amount of staked ETH rises, stakeholders engage in deliberations on potentially reducing ETH issuance.
This ongoing discourse is critical, as it signifies the Ethereum community’s commitment to adapt and optimize network dynamics in response to changing conditions.
How is ETH doing?
Despite these advancements, Ethereum’s price, at $2,935.49, reflects a 2.63% decline in the last 24 hours. More notably, network growth for the ETH token has experienced a decline, signaling waning interest among new users.
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A lack of interest from new addresses could severely impact the ability of ETH’s price to see green.
Moreover, the velocity of ETH being transferred also declined. The reduced velocity indicated a lower frequency of interactions around ETH, suggesting a potential decrease in overall engagement.
Source: Santiment