Hassan Maishera
TL;DR
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ETH is down by 1.5% in the last 24 hours and is now trading below the $4k level.
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The Ethereum network underwent the Dencun upgrade on Wednesday.
ETH Slips Below $4k as the Dencun Upgrade Went Live
ETH, the native token of the Ethereum ecosystem, has been underperforming over the last 24 hours. The coin has lost 1.5% of its value during that period and is now trading below the $4k level.
The poor performance comes after the Dencun upgrade went live on the Ethereum blockchain on Wednesday. Dencun is the biggest upgrade on the Ethereum network since the Merge.
The update is set to significantly reduce the transaction fees of layer-2 networks and enhance Ethereum’s overall scalability. However, some market experts believe that this upgrade is not the ultimate solution for L2 networks.
While speaking to CoinTelegraph, Arthur Breitman, the co-founder of the Tezos blockchain, said,
“The Dencun upgrade does the bare minimum to extend the data usable by rollups on Ethereum, which should lower transaction costs in these L2 solutions. This is a step in the right direction, but ultimately, rollups built on top of Ethereum remain very throughput constrained and are forced to adopt extreme centralization measures.”
Despite its current retracement, ETH has added more than 5% to its value in the last seven days, underperforming compared to Bitcoin.
BTC, the world’s leading cryptocurrency by market cap, is up by 1% in the last 24 hours and is trading above the $73k mark once again. The total cryptocurrency market cap is also up by more than 1% and now stands at $2.76 trillion.
