Grayscale: Ethereum’s Rally Mainly Due to Dencun Upgrade, Not Spot ETFs
Crypto News

Grayscale: Ethereum’s Rally Mainly Due to Dencun Upgrade, Not Spot ETFs

1m
Created 3mo ago, last updated 3mo ago

While the potential approval of a spot Ethereum ETF has been cited as a reason for Ethereum's recent price increase, Grayscale Investments offers a different perspective.

Grayscale: Ethereum’s Rally Mainly Due to Dencun Upgrade, Not Spot ETFs
While the potential approval of a spot Ethereum ETF has been cited as a reason for Ethereum's recent price increase, Grayscale Investments offers a different perspective. In a recent report, the asset manager suggests the upcoming Dencun upgrade, scheduled for March 13, 2024, is the true driver behind the surge.

Grayscale analyst William Ogden Moore argues that the market anticipates the upgrade's ability to improve transaction throughput and cost reduction, making Ethereum more competitive with faster blockchains like Solana. While bullish on Ethereum, the report acknowledges the cryptocurrency's underperformance compared to its sector in 2023, particularly against Solana's impressive 900% growth.

This bullish stance from Grayscale might be influenced by their ongoing efforts to convert their Ethereum trust into a spot Ethereum ETF. With spot Bitcoin ETFs already approved, some predict similar approval for the Ethereum equivalent by May 2024.

Beyond Dencun and potential ETF approval, Grayscale also highlights "net deflationary supply" and "network revenue generation" as factors contributing to Ethereum's future. Additionally, the report emphasizes Ethereum's potential to recapture lost ground in the smart contract application market. They believe that by becoming more competitive in throughput and cost, Ethereum can attract applications requiring high levels of security and censorship resistance, such as stablecoins and tokenized financial assets.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
1 person liked this article