Ethereum reached a new yearly high of $4093.92 this morning. This surge has pushed ETH’s market value above that of the world’s largest retailer, Walmart, making it the 19th largest asset globally. What other potential positive factors are driving the rise in the price of Ether?
ETH surpasses Walmart to become the 19th largest asset
Positive factor 1: Upcoming DenCun upgrade
Positive factor 2: Possibility of Ethereum spot ETF approval in May
Positive factor 3: Expectation of a market cycle recurrence
Bitcoin reached a new high of $72,800 in the early morning hours of the 12th. At the same time, Ethereum also hit a new high for the year, reaching $4093.92 at one point. As of the time of writing, it is temporarily reported at $4062.79, with an increase of nearly 5% in the past 24 hours.
Driven by this surge, Ethereum’s market value has surpassed $485 billion, successfully surpassing Walmart, the world’s largest retailer, and becoming the 19th largest asset globally, surpassing companies such as SPDR S&P 500 ETF Trust, LVMH, and iShares Core S&P 500.
The recent significant increase in Ethereum, in addition to being driven by Bitcoin’s overall market rise, has other potential positive factors. Here are a few key catalysts that have been identified.
The DenCun upgrade for Ethereum is set to be activated on March 13, 2024, at 21:55 Taiwan time. The market expects this upgrade to be a major boost for Ethereum and Layer 2 projects.
The core of the KanKun upgrade is EIP-4844, also known as “proto-danksharding,” which is the first step in Ethereum’s scalability. It introduces a new transaction type (blob-carrying transactions). EIP-4844 expands the blockchain by providing more space for data “blobs” and enables temporary storage and retrieval of off-chain data through Ethereum nodes, thereby reducing transaction fees on Layer 2 networks.
According to IntoTheBlock data, the estimated transaction fees for trading on DEX before and after the DenCun upgrade are as follows:
– Arbitrum’s gas fee will decrease from $2.02 to $0.4.
– Optimism will decrease from $1.42 to $0.28.
– Base will decrease from $0.58 to $0.01.
The significant reduction in transaction fees helps facilitate the explosive growth of applications on Layer 2, and this trend has already begun to emerge. According to L2BEAT data, the current total value locked (TVL) in Ethereum Layer 2 has reached $39.63 billion, with a 7-day growth rate of 15.42%.
After the approval of Bitcoin spot ETFs, nearly $9.6 billion in funds have flowed in, which has had a significant positive impact on the price of Bitcoin. Therefore, the market’s optimistic expectations for Ethereum spot ETF approval by the SEC have also become a major catalyst for ETH’s rise.
Although experts have differing opinions on whether Ethereum spot ETFs will pass in May, Colin Wu, the founder of Wu Blockchain, emphasized the importance of public opinion in a democratic society. He pointed out that Ethereum co-founder Vitalik Buterin, as a Russian, supports Ukraine in the Russia-Ukraine conflict, which is seen positively in the eyes of the United States and adds to Ethereum’s image.
Experienced participants in the cryptocurrency market often discuss market cycle patterns, believing that Bitcoin tends to rise first, followed by Ethereum and other major tokens, and ultimately a sharp rise in smaller tokens, marking the arrival of the so-called Altseason.
Currently, Bitcoin’s market dominance remains strong, with a market share of 53.7%. Based on this situation, investors may position themselves in advance for the next potential upward cycle, especially for Ethereum and other major tokens, further driving the price of Ethereum.
Related reports:
– Ethereum KanKun upgrade guide: DenCun activation time, EIP improvement proposals, impact on validators and developers.
– Bitcoin oscillates at a high point of $72,000, Ethereum approaches $4,100; Coinbase analysis: BTC faces short-term resistance.
– Amazing! Cryptocurrency trading volume in South Korea “surpasses the stock market,” with Bitcoin kimchi premium exceeding 100 million KRW.