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Justin Sun Moves $100M To Binance, Stacking Ethereum?

Justin Sun, the co-founder of Tron–a smart contracting platform for deploying decentralized applications (dapps), is once again moving and shuffling millions of dollars. According to Lookonchain data on February 29, Sun reportedly transferred 100 million USDT to Binance, days after moving huge sums earlier this week.

Justin Sun moves $100 million USDT to Binance | Source: Lookonchain via X

Justin Sun Holds Millions Of ETH: Will The Co-founder Buy More?

From February 12 to 24, a wallet associated with Sun acquired 168,369 ETH for an average price of $2,894. This purchase, valued at roughly $580.5 million, currently holds an unrealized profit of around $95 million. Profitability could increase considering the sharp demand for crypto, especially top coins like Bitcoin and Ethereum, in recent days.

Ethereum price trending upward on February 29 | Source: ETHUSDT on Binance, TradingView

The Ethereum price chart shows that ETH has been on a clear uptrend, rising from around $2,200 in early February to over $3,450 when writing. At this pace, and considering the institutional interest in potent crypto assets, including ETH, the odds of the second most valuable coin stretching gains will be highly likely.

As Bitcoin inches closer to $70,000, the probability of Ethereum also tracking higher toward its all-time high of around $5,000 will be elevated.

Since ETH already owns a big stash of coins, there is speculation that the co-founder will double down, buying even more coins. The crypto community will continue watching the address until this happens and there is solid on-chain data to support the purchase.

Spot Ethereum ETFs And The Dencun Upgrade Are Key Updates

So far, optimism is high, especially among the broader altcoin community. As Bitcoin races to register new all-time highs pumped by institutional billions, eyes will be on the United States Securities and Exchange Commission (SEC). There are multiple applications for a spot Ethereum exchange-traded fund (ETF). 

The agency has not provided a definitive timeline for approving or rejecting the derivative product. There is regulatory uncertainty around the status of ETH, a significant headwind that might delay or even prevent the timely authorization of this product.

Still, the community is looking forward to the next communication in May. If the spot Ethereum ETF is a go, the coin will likely rally to new all-time highs, following Bitcoin.

However, before then, eyes are on the expected implementation of Dencun. The upgrade addresses challenges facing Ethereum, including scalability. Through Dencun, Ethereum developers hope to lay the base for further throughput enhancements in the coming years.

With higher throughput, transaction fees drop, overly improving user experience. This upgrade might go a long way in cementing Ethereum’s role in crypto, wading off stiff competition from Solana and others, including the BNB Chain.

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Top 6 Altcoins That Will Benefit From Ethereum’s Dencun Upgrade: Crypto Analyst

As the Ethereum ecosystem braces for the much-anticipated Dencun upgrade, renowned crypto analyst Miles Deutscher provides an in-depth look at the altcoins poised for significant growth.

Scheduled for March 13, the Dencun upgrade is a critical hard fork aimed at enhancing Ethereum’s scalability, security, and usability. Deutscher’s insights reveal how specific Layer 2 (L2) solutions are uniquely positioned to benefit from the upgrade’s introduction of Proto-Danksharding and other key enhancements.

Deutscher explains, “The Dencun upgrade, especially with EIP-4844, represents a paradigm shift in how Ethereum will handle transactions. By drastically lowering gas fees and increasing throughput, we’re looking at a more accessible, efficient blockchain.” This upgrade is part of Ethereum’s broader roadmap, known as “The Surge,” focusing on scalability improvements.

Top-6 Altcoins To Watch Prior To Dencun

#1 Polygon (MATIC/POL): With its impending rebrand and investment in zk-technology, Polygon is at a pivotal juncture. Deutscher notes, “Polygon’s deep dive into zk-rollups could redefine its position in the L2 landscape, making MATIC an attractive asset for forward-looking investors.”

#2 Arbitrum (ARB): As the leading L2 by TVL and transaction volume, Arbitrum’s robustness is undisputed. “Arbitrum has cemented its position as a powerhouse in the L2 space, and the Dencun upgrade will only amplify its strengths,” Deutscher remarks.

#3 Optimism (OP): Positioned as a strong contender in the L2 space, Optimism’s ecosystem is set to expand. “The announcement of Optimism’s fourth airdrop is not just a reward for its community but a strategic move to bolster its ecosystem’s vibrancy,” says Deutscher.

#4 COTI Network (COTI): With the launch of V2 and its innovative ‘Garbled Circuits,’ COTI introduces a groundbreaking privacy solution. Deutscher observes, “COTI’s approach to privacy on the blockchain through ‘Garbled Circuits’ is a game-changer, potentially setting a new standard for private transactions.”

#5 Mantle (MNT): Highlighting Mantle’s rapid growth, Deutscher points out, “With $1.5 billion in ETH now staked as mETH, Mantle is not just growing; it’s thriving, supported by strategic airdrops that reward its community.”

#6 Metis (METIS): Identified as a potentially undervalued project, Metis’s upcoming initiatives are a beacon for investors. “Metis’s decentralized sequencer and the substantial METIS Ecosystem Fund are laying the groundwork for a robust, decentralized future, making it an intriguing prospect post-Dencun,” Deutscher explains.

Broader Implications For Ethereum

Deutscher also casts a spotlight on Manta Network, Starknet, zkSync, and Linea as projects to watch, emphasizing the widespread impact of the Dencun upgrade. He advises, “The ETH/L2 trade is increasingly compelling as we approach the Dencun upgrade. Shifting a significant portion of one’s portfolio into the Ethereum ecosystem seems prudent, given the transformative potential of the upcoming changes.”

At press time, ETH still traded just below the $3,000 mark.

Ethereum price

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Ethereum Price Soars To Over $2,300 – Is $3,000 Next?

The market performance of Ethereum has been steadily rising since October, marking a positive and long-lasting trend. Increased buying activity has been the main driver of this positive momentum that has persisted over time, pushing the cryptocurrency beyond the vaunted $2,000 resistance mark and igniting a continuing rally.

The value of Ethereum has sharply grown as a direct result of this increased demand and market optimism, with its sights set on breaking through the crucial resistance region at $2,300. This upward trend serves as another evidence of the increasing investor trust and general bullishness surrounding Ethereum, thereby solidifying its place in the changing cryptocurrency market.

Ethereum Hits 18-Month Highs, Targets $3,000

Ethereum, the second-largest cryptocurrency in the world, is rising quickly and has reached levels not seen in the previous 18 months. With a market valuation of $285 billion, ETH is now trading 5.7% higher at $2,375 as of the time of publication. Some speculators have even shared $3,000 price predictions for ETH amid the latest market breakout.

Ethereum’s approaching resistance level poses a huge challenge to buyers of the altcoin, including the fixed barrier at $2.5K, which has frequently shown to be a significant roadblock. But if the market is able to recapture this critical area, Ethereum may go on to reach the $2.5K – or even $3.000 — in the future.

As Ethereum breaks down further obstacles, investors and market watchers are keeping a close eye on the situation. A notable indication of the increased interest from institutional investors is the eagerness with which major players like VanEck, BlackRock, and Grayscale are awaiting clearance for Spot Ethereum ETFs.

According to Santiment, an on-chain data service, Ethereum has reached $2,349, its highest price since June 2022. The amalgamation of the positive long-term trend indicating a rise in wealth for the leading non-exchange whale wallets and a decrease in sell-off power for the leading exchange whale wallets presents a propitious situation for a steady upward trend.

Ethereum’s Non-Exchange Holdings Surge To 55M ETH

A recent tweet from Santinment highlights some intriguing variations in Ethereum’s wallet mechanics. Exchange wallets saw a five-year low of 9.3 million ETH, while top non-exchange wallets are building up to a record 54.6 million ETH. This move points to upward trends, with wealth building through non-exchange transactions and decreased selling pressure.

Over the course of two months, a bearish divergence between the price and the RSI indicator grew, pointing to a possible overvaluation of Ethereum at this point. Given the current characteristics of the market, even if buyers seem to be in charge and overall sentiment is bullish, there is a significant likelihood of a brief corrective phase that involves consolidation and higher volatility in the near future.

Meanwhile, a recent ACDE meeting provided information about the impending Dencun fork of Ethereum, which is set to occur in January 2024. The Goerli network testnet fork was well-prepared for by development teams, opening the door for a larger Goerli shadow network fork in the coming weeks.

By using proto-danksharding, Dencun is expected to greatly increase data availability for layer-2 rollups. This improvement should result in lower rollup transaction costs, which will eventually help end customers.

Dencun’s overall effects include rollups that increase Ethereum’s scalability, gas fee optimization, improved network security, and the deployment of several housekeeping upgrades.

As Ethereum’s price surges to surpass the $2,300 milestone, speculation intensifies about the cryptocurrency’s potential to reach the next significant threshold of $3,000. The recent upward trajectory reflects the market’s confidence in Ethereum’s underlying technology and its role in the evolving digital landscape.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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Ethereum Core Devs Greenlight EIP-7514: Implications For ETH Price

Ethereum Core Developers have officially approved EIP-7514 for inclusion in the upcoming Dencun upgrade which is slated for late 2023. This Ethereum Improvement Proposal (EIP) primarily aims to decelerate the growth rate of ETH staking, thereby providing the Ethereum community additional time to craft an improved validator reward scheme.

The main modification brought by this EIP is setting the Max Epoch Churn Limit, the validator activation queue upper limit, to a constant value of 8. Previously, the churn limit was calculated by taking “The total number of validators/65536,” which at present equates to about 12/epoch.

The decision followed an Ethereum Core Dev Meeting, as described in a tweet by Tim Beiko: “Wrapped up another Ethereum #AllCoreDevs: we covered devnet updates, additions to Dencun, and had a full overview of Reth. […] EIP-7514 will be part of the Dencun upgrade! Expect the EIP and associated CL specs PR to be updated to reflect all of this in the coming days.”

Beiko’s statement underscored the importance of this change and provided insights into the consensus among Core Developer teams. Dankrad Feist, a Researcher at the Ethereum Foundation, outlined the importance of the approval. Feist stated:

My reasoning on why I’m for EIP-7514. It is currently unclear if (especially liquid) staking will keep growing indefinitely. In the case that the withdrawal queue does not empty over the next few months, the lower churn limit will give the Ethereum community the time needed to research, debate and implement solutions.

Implications For Ethereum Price

The staking ratio’s continual rise could result in a diminishing amount of liquid ETH available for trading. Should the staking ratio near 100%, it might produce a supply scarcity, thereby influencing the ETH price positively. However, from the information presented, Ethereum developers are not advocating for this scenario due to potential technical and security implications.

EIP-7514, therefore, indirectly impacts the ETH price by manipulating its supply side, though immediate, direct effects on the price aren’t anticipated. Instead, any potential influence on price would likely manifest over an extended period.

The motivation behind EIP-7514, as detailed on GitHub, is to “mitigate the negative externalities of very high level of total ETH supply staked before a proper solution is implemented.” If the deposit queue stays 100% full, the share of ETH supply staked will reach 50% by May 2024, 75% by September 2024, and 100% by December 2024.

Remarkably, the modest returns don’t necessarily deter further capital staking, especially with the frequently substantial and erratic returns from MEV. Therefore, EIP-7514 serves as an interim measure, buying time for the community to deliberate and develop comprehensive solutions to the emerging challenges.

In summary, while the immediate effects of EIP-7514 on the ETH price remain to be seen, its long-term implications, especially in terms of staking growth and supply side management, could be substantial. The community and investors alike will closely monitor the aftermath of this EIP’s implementation in the Dencun upgrade.

ETH Price Builds Momentum

At press time, ETH was trading at $1,628. On Monday, ETH price bounced off the 78.6% Fibonacci retracement level at $1,536. A breakout above the 20-day EMA at $1,639 and consequently above the 61.8% Fibonacci level at $1,665 is critical to maintain upside momentum.

Ethereum ETH price

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Upcoming Ethereum Upgrade To Reduce Fees – Details

The second largest crypto blockchain Ethereum is preparing for a new upgrade that will reduce transaction fees on the network. The upgrade tagged “Dencun” will also introduce more use cases for Ethereum. 

Notably, Ethereum Foundation made the announcement of Dencun upgrade just three weeks after the Shapella upgrade.

With the upcoming Dencun upgrade, Ethereum network users can now transact with lower fees. 

Introducing Dencun Upgrade – What You Need To Know

The upcoming Dencun upgrade will feature Ethereum Improvement Proposals (EIPs). These are proposals that aim to bring changes to the network. The Ethereum community usually reviews the proposals to accept or reject them.

If the community accepts the EIPs, they become a part of the Ethereum network codes. The Dencun upgrades have four proposals, including EIP-1153, EIP-6475, EIP-4844, and EIP-6748. 

The first proposal is EIP-4844 or Proto-Danksharding or The Surge. The Surge aims to bring in “data blobs” for Layer 2 solutions to post transaction and proof data instead of CALLDATA. 

The blobs offer lower gas costs since they’re never stored on the blockchain permanently. The blob aims to lower the transaction fee on Ethereum. 

Other Dencun Proposals Bring Diverse Changes

The second important proposal for review is the EIP-6780. This proposal is to deactivate the SELFDESTRUCT opcode but still preserve its functionality. EIP-6780 proposal will allow the creation and erasure of contracts in a single transaction but not delete the contract code or storage.

The third proposal is EIP-1153 which will bring two new opcodes, TSTORE and TLOAD, to the network. The developers aim to provide transient storage that will be cleared once a transaction ends. This will add more use cases, from re-entry locks to single-transaction ERC20 approvals.

Ethereum

The fourth proposal is EIP-6475: SSZ Optionals. This change supports EIP-4844 since it defines one of its SSZ elements in the transaction format. The aim is to facilitate forward compatibility with SSZ objects that will be introduced to the network. 

While the four proposals above remain the major ones, the development team has others that might be considered too. One of the probable ones is EIP-2537: Precompile for BLS12-381 curve operations.

-Featured image from Pexels and chart from Tradingview