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Ethereum Gas Fee Hits Four-Year Low After Dencun Upgrade, A Boon or Bane?

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2 months ago

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In a major development, the Ethereum gas fee has touched its lowest level in four years since 2020. As of now, the average gas fee on Ethereum is 6.8 Gwei. As a result, all on-chain operations such as cross-chain bridging, asset swaps, NFT minting, etc. have turned out to be more affordable to users.

The Post Dencun Upgrade Effect for Ethereum

After the post-Dencun upgrade, which brought about blobs and enhanced network efficiency, there was a noticeable decrease in fees. This upgrade piqued developers’ interest in how gas prices might rise if market activity were to surge.

The Dencun upgrade has successfully disconnected Ethereum’s transaction fees from network activity, ensuring that fees remain low even during times of increased usage.

However, the latest report from CryptoQuant suggests that the Dencun upgrade has made the Ethereum blockchain inflationary once again. This has potentially killed its characteristics of being an “ultra-sound” money.

According to a report published on Wednesday by CryptoQuant, the Ethereum network has experienced a decrease in transaction fees following the Dencun upgrade. Consequently, the amount of ether burned has reached one of its lowest levels since the Merge.

Furthermore, the report highlighted that the supply of ether is currently increasing at its fastest daily rate since the Merge event on the Ethereum network.

The Cryptoquant analysts noted: “Before the Dencun upgrade, the higher network activity on Ethereum meant higher fees burned and hence less ether supply. However, after the Dencun upgrade, the total amount of fees burned has decoupled from the network activity”.

The report’s findings suggest that, given the present level of network activity, Ethereum is unlikely to return to a deflationary state. Consequently, the narrative surrounding ether as “ultra-sound” money has likely faded, unless there is a significant increase in network activity to revive it.

ETH Price Action

The Ethereum (ETH) Price continues to remain volatile falling over 4% in the last 24 hours and currently trading around $2,900 levels. ETH has largely underperformed BTC in recent times and this could continue going further believe some market analysts.

The ETH/BTC pair has breached its support level of 0.05, a pattern often signaling a forthcoming price decline. Should the ETH/BTC pair dip below 0.04, the analyst anticipates Ethereum’s price potentially plummeting to approximately $2,500.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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XRP Takes Bearish Turn As Whale Offloads 65M Coins, What’s Next?

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2 hours ago

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July 4, 2024

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Against the backdrop of the crypto market’s remarkable bearish movement today, an XRP whale has continued to dump significant amounts of coins to exchanges. Over the past day, nearly 65 million XRP was recorded to have been offloaded, raising severe concerns among crypto market participants.

XRP is currently feeling the heat of the broader market’s downtrend, as also seen by Bitcoin (BTC) slipping as low as the $57K mark. Further, the whale’s dump, despite the recent advancements in the XRP lawsuit, has curated a storm of speculations on future price movements.

Whale Dumps 65M Coins

In a couple of posts shared by the on-chain transaction tracker Whale Alert, it was pointed out that 64.70 million coins were shifted to CEXs via the same whale address. As per the data, the address …Rzn was registered to have been making the massive dump.

Intriguingly, the whale shifted 32.69 million XRP, worth $15.12 million, to the Bitso crypto exchange. Meanwhile, in another transaction, the whale shifted 32.01 million XRP, worth $14.82 million, to the Bitstamp crypto exchange.

The emergence of these transactions amid XRP showing signs of a pullback has raised bearish market sentiments. Also, it’s worth noting that speculations of this whale being linked to Ripple persist. For context, these transactions became a recurring phenomenon soon after Ripple strategically acquired a stake in Bitstamp.

In the interim, XRP price continued to dip, aligning with the whale’s massive dump and the broader market trend. Despite positive developments in the Ripple vs the U.S. SEC lawsuit, as Ripple filed a notice of supplemental authority, the XRP community is yet to witness a significant shift in market sentiment.

Also Read: German Govt Dumps Another 1300 Bitcoin To Coinbase, Kraken & Bitstamp

XRP Price Tanks

At press time, XRP price showed signs of a pullback, falling 6.84% to $0.4502. The Ripple-backed asset’s 24-hour lows and highs are $0.4486 and $0.4833, respectively.

XRP’s Futures OI dipped 10.08% to $547.41 million, coinciding with the price fall. However, the derivatives volume rocketed 86.88% to $1.58 billion. This hinted at an uncertain market sentiment for XRP.

Meanwhile, crypto analyst Dark Defender took to X, spotlighting the cryptocurrency’s turbulency below $0.4623. The analyst states that the volume is currently at a shallow level, indicating a lack of market activity with no selling or buying. This could potentially pave the way for a dip to $0.3917 should XRP close below $0.4623.

Crypto market enthusiasts continue to eye the token for vital shifts ahead.

Also Read: Ethereum Roll-Out EIP-7732 Proposing Major Shift In Block Validation Process, Here’s All

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ethereum Roll-Out EIP-7732 Proposing Major Shift In Block Validation Process, Here’s All

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3 hours ago

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July 4, 2024

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Ethereum is on the brink of a significant upgrade with the introduction of EIP-7732. This Ethereum Improvement Proposal aims to revolutionize the block validation process by implementing a trust-free, fair exchange mechanism between beacon block proposers and builders. The proposal’s primary goal is to enhance the network’s efficiency and security.

Technical Implications and Security Considerations

Currently, block proposers often rely on builders to assemble the content of new blocks, with a middleman ensuring smooth operations. EIP-7732 seeks to eliminate this intermediary, proposing a split in the block validation process. Under this new system, validators would first verify the overall structure of a block before delving into its contents, potentially streamlining network operations.

The proposal also introduces a Payload Timeliness Committee to ensure new blocks are added to the chain quickly and fairly. While this change could significantly improve Ethereum’s security and fairness, it would require a network-wide upgrade, necessitating careful consideration from the Ethereum community.

EIP-7732 proposes several technical changes, including a new approach to handling withdrawals from Ethereum’s beacon chain. While this could increase efficiency, it might also result in temporary empty slots in the blockchain as withdrawals catch up. The Ethereum developers behind EIP-7732 have also prioritized security, incorporating safeguards against various attack vectors and ensuring the system can resist attempts to rewrite recent blockchain history. These measures aim to fortify Ethereum’s resilience and decentralization.

If approved and implemented, EIP-7732 could represent a significant leap forward for Ethereum, potentially strengthening the network and enhancing its decentralized nature. However, the complexity of these changes requires thorough evaluation by the Ethereum community before implementation.

Also Read: BitMEX Expands Support For Dogecoin, Shiba Inu, Pepe Coin & Others; Here’s How

Ongoing Discussions and Market Impact

While EIP-7732 is being considered, Ethereum developers are also discussing the integration of EOF (Ethereum Object Format). Tim Beiko has recommended shipping all Pectra EIPs, including EOF, in a single client release. Discussions are also ongoing regarding EIP 7702, which is being considered as a replacement for EIP 3074. However, some specification issues with EIP 7702 still need to be resolved, and Ethereum protocol developers are working in separate breakout rooms to address these challenges.

These potential changes could impact Ethereum’s market performance. Despite the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC), Ethereum has been showing bearish signs. As of the last update, Ethereum price was trading at $3,158.48, experiencing a 5.53% decline over the previous 24 hours.

Also Read: Donald Trump Presidency Can Trigger ‘Global Hash War’ With BTC Reserves, Says Bitcoin Maxi

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Solana DEX Jupiter (JUP) Braces for Major Listing, Recovery Ahead?

Published

4 hours ago

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July 4, 2024

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The Solana-based DEX (Decentralized Exchange) Jupiter (JUP) has recently captured noteworthy attention across the crypto space. Despite the broader crypto market’s bearish movement today, July 4, the JUP token has amassed optimism over future price movements.

Notably, Upbit, a well-known South Korean crypto exchange, has added support for the Solana DEX’s native token on its platform. This mover stages as an optimistic factor and is expected to bolster the token’s future price movements.

South Korean Exchange Unveils Listing

According to the official statement revealed by the Ubit crypto exchange, JUP trading is to commence today. The available pairs are JUP/USDT, JUP/BTC, and JUP/KRW.

Deposits and withdrawals will commence two hours after the official statement is revealed. The network for deposits and withdrawals is Solana.

It’s worth noting that the exchange does not support transactions through other than guided networks. Further, buy orders are prohibited for approximately 5 minutes after the trading support. “Sell orders at prices less than 10% of the previous day’s closing price are restricted for approximately 5 minutes after trading support,” the exchange added.

Meanwhile, other updates on the JUP listing were also rolled out on Upbit’s official site.

Simultaneously, crypto market participants expect a paradigm shift in prices, as previous listings on the South Korean exchange have fueled significant upside actions. CoinGape Media reported earlier this year that Zetachain (ZETA) and Omni Network (OMNI) saw a phenomenal uptick in prices as trading volumes surged with Upbit listing.

These chronicles have added an optimistic tint to the JUP token’s future price movements despite today’s dip.

Also Read: Donald Trump Presidency Can Trigger ‘Global Hash War’ With BTC Reserves, Says Bitcoin Maxi

Jupiter Price Plunges

At press time, the JUP token’s price saw a 3.41% fall to trade at $0.7986. Its 24-hour lows and highs are $0.7446 and $0.8273, respectively.

However, the token’s 24-hour trading volume was up 103.03% over the past day, at $219.30 million. Also, it’s worth noting that today’s fall is in line with the broader market movement. Even SOL price saw a 7.69% dip in value to trade at $134.54.

Nonetheless, as mentioned above, a substantial money influx with the listing could result in a recovered price ahead.

Also Read: Coinbase Files Against SEC Blockade On Gary Gensler Info In Court

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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