Grayscale Report: What Triggers Ethereum Price?

  • Grayscale Investments claimed that the recent price surge of Ethereum is driven by anticipation of the upcoming Denouement upgrade.
  • In a new report released on Friday, Moore stated, ‘We believe the recent price performance is a reflection of the market anticipating this upgrade.’
  • In the latest report, Grayscale’s analyst outlined a highly favorable situation for Ethereum. The price of Ether has increased by approximately 25% since the beginning of the year.

After the Ethereum price rose above $3000, Grayscale Investments investigated why Ethereum was rising.

Why is Ethereum Price Rising? Grayscale Explains!

ethereum-eth

While most market observers link Ethereum’s recent price increase to optimism surrounding the potential approval of a spot Ether ETF, asset manager Grayscale Investments suggested that the cryptocurrency’s appreciation is due to the upcoming Denouement upgrade, which is expected to increase transaction throughput and reduce costs on the network.

Research Analyst William Ogden Moore from Grayscale, in a new report released on Friday, stated, ‘We believe the recent price performance is a reflection of the market anticipating this upgrade,’ and added, ‘The Denouement upgrade scheduled for March 13, 2024, is a significant step forward and may help Ethereum compete in scalability against faster chains, particularly like Solana.’

The new report from Grayscale’s analyst presents a notably positive outlook for Ethereum. The price of Ether has increased by approximately 25% since the beginning of the year. However, the report notes that Ethereum did not outperform in terms of price in 2023 compared to the industry and especially against competitors like Solana, which experienced over 900% growth last year.

Taking a bullish stance on Ethereum is perhaps not surprising, considering Grayscale’s attempt to convert its confidence in Ethereum into a spot Ether ETF. Some believe that the Securities and Exchange Commission (SEC), having approved spot bitcoin ETFs that began trading last month, will likely approve the new financial instrument, possibly in May.

Smart Contract Applications

In addition to the upcoming Denouement upgrade and the potential approval of spot Ether ETFs, the Grayscale report identified ‘net deflationary supply’ and ‘creating network revenue’ as other reasons for optimism.

Grayscale also suggested that ETH could reach more smart contract applications. Moore wrote, ‘If Ethereum can be more competitive not only in transaction capacity and cost but also in terms of high security and censorship resistance, it could position itself to capture smart contract applications such as stablecoins or tokenized financial assets that require a high level of security and censorship resistance.’

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin BTC’s Roller Coaster: Plunge and Surge Amid Halving Event and Market Volatility

Explore the dramatic shifts in Bitcoin's price as it navigates through halving aftermath and potential market recoveries.

Exploring Blockchain’s Future: Insights from Gateio’s VC & Web3 Ecosystem Party at TOKEN2049

Join industry leaders from Gate.io and Huawei Cloud as they delve into the future of blockchain and Web3 technologies, following a successful gathering at TOKEN2049 in Dubai.

Bitcoin BTC’s Post-Halving Era Begins: Dominance Stabilizes as Altcoins Rally

Explore the evolving dynamics of the cryptocurrency market following Bitcoin's latest halving, which could set the stage for altcoin success.

Bitcoin Fees Skyrocket, Surpassing Ethereum – Could Ordinals Boost BTC Security?

Discover how Bitcoin fees have soared, the role of Ordinals in this trend, and the potential implications for Bitcoin's security model.

Bitcoin Halving Sparks Market Volatility: Demand Surge Meets Miner Challenges

Discover the key factors driving Bitcoin's trajectory after the halving. Get expert insights into the potential for a supply shock, the role of ETFs, and the challenges faced by miners.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Litecoin Could Be Preparing for a 20% Rise! Current LTC Analysis

Will Litecoin continue its upward trend? What should LTC investors expect? What are the targets in the current LTC analysis?

Ethereum Might Be Preparing for a Rise! Current ETH Analysis

Ethereum's daily chart has sustained a rise up to $3100 after strong buying in the $2867 - $2950 range. Current ETH Analysis

NEO Launches Uptrend to $25! Current NEO Analysis

Analyzed NEO's 3-hour chart, showing upward trend post $14.80 resistance breakthrough, eyeing $15.18 resistance; potential long positions suggested at $14.636 - $14.448 support range with a stop loss at $13.90, as NEO aims for $25 target amidst over 5% gains.

Is Litecoin Ready to Launch its Rise to $140? Current LTC Analysis

When examining LTC's technical chart, a downward trend is observed in recent days. The nearest support is at the level of 91.86 dollars. The support range between 97.61$ and 99.07$ on the 4-hour chart is significant. For long positions, the support range of 92.41$ - 91.07$ can be expected.

Bitcoin (BTC) Surges Past $70k: Could a Rally to $75k be Next?

Get expert analysis on Bitcoin's breakout above $70,000. Discover what's driving the price action, key levels to watch, and potential scenarios for BTC's near-term future.
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin BTC’s Roller Coaster: Plunge and Surge Amid Halving Event and Market Volatility

Explore the dramatic shifts in Bitcoin's price as it navigates through halving aftermath and potential market recoveries.

Exploring Blockchain’s Future: Insights from Gateio’s VC & Web3 Ecosystem Party at TOKEN2049

Join industry leaders from Gate.io and Huawei Cloud as they delve into the future of blockchain and Web3 technologies, following a successful gathering at TOKEN2049 in Dubai.

Bitcoin BTC’s Post-Halving Era Begins: Dominance Stabilizes as Altcoins Rally

Explore the evolving dynamics of the cryptocurrency market following Bitcoin's latest halving, which could set the stage for altcoin success.