Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Why Ether Is Likely to Hit a New All-Time High in March Following Bitcoin

Published 08/03/2024, 20:24

While Bitcoin has undoubtedly captured the lion’s share of attention in the cryptocurrency market, analysts and investors are focusing on Ether (ETH), the native token of the Ethereum blockchain. With the highly anticipated Dencun upgrade and growing excitement surrounding the potential approval of spot ETH exchange-traded funds (ETFs), many experts predict that Ether could more than double in value during 2024.

As the world’s second-largest cryptocurrency by market capitalization, the question on everyone’s mind is whether Ether can follow in Bitcoin’s footsteps and shatter its previous all-time high, further solidifying its position as a formidable force in the digital asset realm.

Ether Inching Towards All-Time High After Bitcoin in March, Up 67% YTD

Ether, the second-largest cryptocurrency by market capitalization, has been on a remarkable upward trajectory in 2024. As of 12:36 PM UTC on March 8th, Ether’s price stood at $3,944.34, representing a 4% increase (+$151.63) from the previous day’s closing.

The year-to-date (YTD) return for Ether has been an impressive 67.64%, reflecting the growing confidence in the Ethereum network and its potential for further growth. While Ether’s price has fluctuated throughout the year, reaching a high of $3,939.59 on March 7, 2024, and a low of $2,113.93 on January 3, 2024, recent price movements indicate a significant upward trend.

With an average daily trading volume of approximately $22 billion to $47 billion, Ether has solidified its position as a highly liquid and actively traded digital asset. Ether’s ability to recover from its January lows and achieve new highs in early March highlights the resilience and growing adoption of the Ethereum ecosystem.

Dencun Update Coming Soon for the Ethereum Mainnet, Will Reduce L2 Fees Significantly

The highly anticipated Dencun upgrade, scheduled for March 13th, promises to be a game-changer for the Ethereum ecosystem. One of the primary expected outcomes is lower transaction fees for users leveraging layer-2 scaling solutions built on top of the Ethereum mainnet. This upgrade will enable Ethereum to function as a robust database for other blockchains, cementing its position as a foundational layer for the rapidly evolving Web3 landscape.

The Dencun upgrade is a critical component of Ethereum’s rollup-centric roadmap, designed to support millions of users on layer-2 blockchains while improving overall scaling and efficiency. By reducing the costs associated with storing data on the main Ethereum blockchain, layer-2 solutions will likely see a significant reduction in fees for their users.

The Dencun upgrade will not directly benefit Ethereum users by fee reductions, as its primary impact will be felt on layer-2 networks. In the short term, users seeking to take advantage of these fee benefits will have to trade off some level of decentralization and security by transacting on layer-2 solutions instead of directly on the Ethereum mainnet.

As layer-2 platforms mature and gain traction, Ethereum is expected to remain the preeminent choice for application-specific purposes, leveraging its robust ecosystem and proven track record. The Dencun upgrade represents a significant milestone in Ethereum’s journey towards scalability, paving the way for broader adoption and innovation within the Web3 space.


Disclaimer: Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.