Ethereum’s Dencun upgrade: nearly $200 million in ETH burned

The price of Ethereum (ETH) has risen quickly over the last week. This increase is likely due to investors anticipating the upcoming Dencun upgrade and the potential approval of Ether-tracking exchange-traded funds by the US Securities and Exchange Commission (SEC) this year. Additionally, on-chain data reveals that nearly $200 million worth of ETH was burned last week. This reduction of available Ether could indicate further price increases.

ETH investors are eagerly awaiting two key events. First is the upcoming Dencun upgrade, and second is the SEC’s verdict on the Ethereum ETF. These are considered the two leading game changers for this altcoin’s price.

Dencun upgrade may propel Ethereum to $4,000

The anticipated Dencun upgrade could boost Ethereum’s value to hit and even surpass the crucial $4,000 mark. This upgrade addresses Ethereum’s scalability issue, part of the widely-known “Blockchain Trilemma”.

The Blockchain Trilemma involves balancing three crucial elements: security, scalability, and decentralization. Ethereum has emphasized decentralization and security; thus, scalability can be enhanced through updates and significant modifications to the blockchain.

Evidence points to Ethereum’s growth potential

If we peer into blockchain data, we can see signs that Ethereum will likely continue growing. An essential factor to consider is the coin’s available supply, which can indicate selling pressure. If we look closer, data from shows us that $190 million in ETH has vanished from the available supply due to token burning.

If we examine the different types of investors holding ETH closely, we can see a pattern that suggests a rise in prices is on the horizon. Investors with smaller wallets (10 to 10,000 ETH) have been selling their shares, probably taking advantage of the profits since March. On the other hand, those with larger wallets are buying more ETH.

Historically, when these ‘big fish’ start accumulating more of the asset, it tends to indicate a future uptick in the value of Ethereum. This pattern has been reflected in precedented price rallies, as shown in the chart below.

ETH fans are eagerly awaiting the SEC’s decision regarding approving a Spot Ethereum ETF. Several applications are pending with the US regulator, and a decision is expected by May 23. ETH enthusiasts hope approval could attract big institutional investors, sparking ETH price growth, similar to what happened with Bitcoin.

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