Ethereum, the leading smart contract platform, has seen a significant surge in its value, surpassing $3,500 just days before the anticipated Dencun upgrade. This milestone marks a 3% increase from the previous day and a notable 15% growth over the past week, achieving its highest valuation since January 2022. According to data from IntotheBlock, a staggering 91% of Ethereum is now “in the money,” indicating that the majority of ETH held in wallets has appreciated since its purchase.
Anticipation Builds for the Dencun Upgrade
The Ethereum community is abuzz with excitement as the Dencun upgrade, scheduled for March 13, approaches. This pivotal update aims to introduce proto-danksharding to the Ethereum network, promising to significantly enhance transaction speeds and reduce costs. Developers have expressed their enthusiasm for the upgrade, with many highlighting its potential to revolutionize the Ethereum blockchain in ways they have long envisioned.
DeFi Ecosystem Witnesses Robust Growth
The bullish sentiment surrounding Ethereum has had a ripple effect on the decentralized finance (DeFi) sector. The total value locked (TVL) in DeFi protocols has soared to $94 billion, reaching its highest point since the TerraUSD collapse in 2022. This resurgence reflects a growing confidence in the DeFi ecosystem, which had experienced a dramatic downturn following the TerraUSD crash and its ensuing market contagion.
The TerraUSD debacle, which promised returns of up to 20% before its catastrophic failure, had led to a significant withdrawal of funds from DeFi protocols, plummeting the TVL to as low as $36 billion in October 2023. However, the recent surge in Ethereum’s price and the broader recovery of the cryptocurrency market have contributed to a nearly threefold increase in DeFi assets’ value.
Ethereum and Solana Lead Market Recovery
Ethereum’s impressive performance over the past month, with a 64% increase in value, has outpaced its price growth and signifies a robust recovery in the cryptocurrency market. Solana has also shown remarkable growth, with its native SOL token experiencing a 34% rise in value over the same period.
