Ethereum [ETH]: Developers take on this new update after Shapella as traders remain bearish
Ethereum's development team continues to add new proposals to the network. Despite high development activity and rising prices, traders are not convinced.
- New additions get added to Ethereum’s Dencun update as development activity progresses.
- Staking deposits begin to surge as traders continue to be skeptical.
After the successful launch of the Shapella Upgrade, the Ethereum [ETH] network is getting ready for the next update. The developers have already begun the work for the new Dencun update.
Read Ethereum’s Price Prediction 2023-2024
A brief on the Dencun update
The major development for the Dencun update would be proto-dank sharding. There were also several other Ethereum Improvement Proposals (EIPs) that were being considered for inclusion in future upgrades.
EIP-2537 was one of the proposals being considered. This proposal would make it easier to validate Beacon Chain signatures and develop new use cases.
This proposal has been under consideration since 2019. While there was some hesitation in the past about adding a new cryptographic curve, the concerns have now been resolved.
EIP-4788 was another proposal that was discussed. It lets Ethereum’s execution layer access information from the Beacon Chain.
It adds the root of Beacon Chain blocks to execution payloads and stores them in a contract. This stored data can then be accessed via a new opcode, allowing for more secure staking pools, bridges, and restaking protocols.
It is yet to be determined how or whether these new upgrades will have an impact on the Ethereum network.
However, it was observed that Ethereum’s last upgrade was received positively by the crypto community. After the Shapella Upgrade, there was a surge seen in ETH deposits.
The observed spike in new ETH deposits is indicative of a reduction in staking risks.
Prior to the Shapella upgrade, the average daily deposits were recorded at 14,000 ETH. Following the upgrade, the average daily deposits experienced a significant increase, surging up to 81,000 ETH per day, indicating a 6-fold rise.
Realistic or not, here’s ETH’s market cap in BTC terms
Foot on the Gas
In terms of activity on Ethereum, the gas usage indicated that daily activity did not decline over the past few weeks. However, there was a sharp decline observed in terms of the number of NFTs being traded on the Ethereum network.
At press time, Ethereum was trading at $1901.27, an increase of 1.83% in the last 24 hours, according to CoinMarketCap’s data. Despite the rising prices of ETH, the put-to-call ratio for ETH was negative. This showed that traders were bearish on ETH at the time of writing.
