Ethereum's native token, Ether, has recently been on the cusp of breaking the $2.5K resistance level, marking a 19-month high. This surge is attributed to several key factors:
Network Upgrade and Vitalik Buterin's Proposal: The anticipation of Ethereum's network upgrade and a recent proposal by Ethereum co-founder Vitalik Buterin have significantly fueled Ether's price. This proposal aims to enhance the network's efficiency and quantum-resistance.
Increased DApp Use and Volume Growth: Ethereum has experienced a 38% increase in volumes over the past week, showcasing its dominance over competitors like BNB Chain and Solana. Leading DApps such as Uniswap, Balancer, and Cowswap have contributed notably to this volume growth.
Layer-2 Scaling Solutions: The activity on Ethereum's layer-2 scaling solutions has exceeded expectations. Networks like Polygon and zkSync Era have driven the aggregate unique active addresses to 2 million in just 7 days, indicating a high level of engagement with DApps on Ethereum.
Cancun Upgrade Anticipation: The upcoming Cancun upgrade, set for testing in January, is expected to lower transaction fees and introduce new features. This upgrade includes the Ethereum Improvement Proposal (EIP) 4844, which aims to enhance the efficiency of rollup networks by storing transaction data in a new format called "blobs".
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
