Ethereum After Shapella: Cancun-Deneb Upgrade
By Kapil Rajyaguru
Ethereum’s highly anticipated Shapella upgrade was successfully completed on April 12, 2023, and prices have since shot up by over $200.
However, Ethereum – the second largest cryptocurrency – declined more than 13% from a Tuesday high of $2,118. Last Friday, ETH dipped to lowest level since April 9, in the process wiping off entire gains recorded post the implementation of the highly anticipated Shanghai upgrade.
Let’s have a look at four key reasons that led to the fall of Ethereum prices post Shanghai upgrade.
First — Higher than expected March inflation in the U.K. surpassed 10% which led to fall in the prices of ethereum.
Second, Gary Gensler and Representative McHenry arguing on whether $ETH is a commodity or a security is one of the major reasons why we have observed a lot of volatility in the prices of ethereum networks.
One of the recent reasons for the fall in the price of ethereum post shanghai upgrade has been pertained to increase in number of days for a validator to get their staked ether back amounting to 17 days now.
And lastly, Due to all these reasons markets have observed profit taking which pushed the price of ethereum below the crucial $1,900 mark.
The question arises, now what’s next on the horizon after the Shapella Upgrade.
Well, Ethereum core developers convened to plan code modifications for the blockchain’s consensus layer in preparation for the next upgrade after Shapella, Cancun-Deneb.
After activating the Shapella upgrade earlier this month — which introduced validator withdrawals — developers are now making progress on the next upgrade, referred to as “Cancun-Deneb,” expected to occur later this year.
To make Ethereum cheaper for users, the upgrade will implement new changes across Ethereum’s two mainnet layers: the execution layer, which handles smart contract execution, and the consensus layer, focused on blockchain consensus via staking.
To provide clarity, the upgrade for the execution layer will be called Cancun. The consensus layer upgrade will be named Deneb — thus giving the combined upgrade its name, Cancun-Deneb.
The most significant change anticipated in Ethereum’s Cancun-Deneb upgrade later this year will be Ethereum Improvement Proposal (EIP) 4844, also known as “proto-danksharding.”
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