Countdown to Denkun Update: Will Ethereum Price Rally?
Ethereum is in the spotlight as the Denkun upgrade inches closer. Will Ethereum Break Above $3,000?
According to Ethereum Foundation protocol support, Tim Beiko will release Ethereum's next update, Denkun, on January 18th. Denkun is set to launch first on the Goerli testnet, followed by the Seppoli and Holeski testnets on January 31 and February 7, 2024, respectively. The main net launch is scheduled for February 2024.
Will this new update make things better for ETH?
Denkun prepared for Q1/2024
Denkun was originally expected to launch in late 2023, but concerns about testnet deployment timelines and consensus issues prompted Ethereum's core developers to delay its implementation. While the event is now slated for early 2024, the team has not finalized dates.
The update introduces proto-danksharding, or EIP-4844, to increase data storage and improve the efficiency and scalability of packages using “blobs”. Blobs are chunks of data that are much larger than normal Ethereum transactions that can be attached to blocks. They can contain up to 125 kilobytes of data, compared to the standard transaction size of 250 bytes.
The process is expected to have a positive impact on Ethereum's scaling protocols, such as the reduction of transaction fees and network security. Layer 2 solutions have gained a lot of attention in the last few months due to their cost advantage. However, concerns about their security and centralization persist. With Denkun, Ethereum seeks to address these challenges in a bundle and enhance the performance of bridges and staking protocols.
Recent tests indicate widespread adoption of the Denkun update among Ethereum nodes with a participation rate of 99%. Meanwhile, 95% of databases were distributed within two seconds, indicating that the upcoming update could bring improvements in scalability and network efficiency.
Denkun's impact is far greater than technical improvements. It marks a change for the Ethereum ecosystem, paving the way for explosive growth and fundamental innovations.
Improved data storage, streamlined transactions and improved scalability open up new opportunities. These ripples are felt throughout society, fostering an environment where infrastructure can flourish and a more inclusive and robust digital economy can take root.
In the year On December 31, Ethereum creator Vitalik Buterin released the Blockchain 2024 roadmap. Key highlights include the implementation of one-slot finality, the implementation of a proof-of-stake mechanism, the implementation of Denkun, mining value (MAV) solutions, the centralization of liquid pools, and the simplification of Ethereum design.
In a post published on December 27, Vitalik suggested three ways to make Ethereum's proof of stake “relatively simple and easy.” He proposed reducing validator signatures to 8192, including decentralized staking, two-level staking, and rotating validator participation. His proposal aims to ease the technical burden of the system while maintaining efficiency, security and decentralization.
Spot Ethereum ETF Outlook
Along with the much-anticipated Denkun update, Ethereum enthusiasts eagerly await the US Securities and Exchange Commission's (SEC) decision on Ethereum exchange-traded funds (ETFs). Market observers believe that the SEC's upcoming ruling on spot Bitcoin ETFs, expected on January 10, could act as a catalyst to approve spot Ethereum ETFs.
Major institutions such as BlackRock, ARK Invest, VanEck, Fidelity, Invesco and Grayscale have all filed applications for spot Ethereum ETFs in the US. While no approvals have been granted, the SEC has extended the decision deadline for these proposals to May 2024. However, with the outcome of spot Bitcoin ETFs coming in, analysts expect a similar period for spot Ethereum ETFs to follow.
Ethereum is currently trading at around $2,300. Excitement in the crypto community is growing as Ethereum has the potential to reach new heights, coupled with a series of important events this year. If an ETF enters the market in 2024, the price of ETH may rise.
Now, we just have to wait to see how the reform will play out, and what 2024 will bring to the crypto market.
