Explore the recent Dencun upgrade of Ethereum, its effect on ETH price, and market reactions. Stay informed with Decrypt's coverage of blockchain advancements.

The latest Ethereum enhancement, known as the Dencun upgrade, went live midweek. Following its launch, the value of ETH experienced a slight downturn of 3.2%, dropping from $4,076 to $3,949, as per CoinGecko data.

However, the market has since shown signs of recovery, with ETH reclaiming its position above $4,000 at the time of drafting this article.

Each upgrade aims to enhance the Ethereum blockchain, with goals such as reducing transaction fees and enhancing transaction speeds, ultimately contributing to its long-term value.

"Dencun is not only poised to reduce fees, thus facilitating increased trading and investment activities, but it also sets the stage for more competitive peer-to-peer transactions and commercial payments," commented Beam Wallet CEO Andy Bromberg in correspondence with Decrypt. "Furthermore, product enhancements will simplify crypto adoption and payment transactions. Unlike the previous bull market, we're now geared towards seizing momentum for real-world applications."

Highlighted here are some significant recent developments in Ethereum and the market's response before and after each upgrade.

The advantages brought by the #Ethereum Dencun upgrade are tangible 🫡 (h/t @gelatonetwork @mlphresearch) pic.twitter.com/vcZulnYZFG

— Chris Burniske (@cburniske) March 13, 2024

In the lead-up to the highly anticipated "Merge," marking Ethereum's transition from a Proof of Work to a Proof of Stake algorithm, Ethereum traded above $1,700, reaching a peak of $1,779 on September 11, 2022. On September 15, the day of the "Merge," Ethereum commenced trading at $1,635, witnessing an 11% decline to $1,472 and continuing to decline steadily in the subsequent days. By the end of September, Ethereum was valued at $1,329.

Prior to the Grey Glacier upgrade on June 30, 2022, Ethereum experienced a slight decline of 3.8%, falling from $1,098 to $1,057.

Nevertheless, internal milestones do not consistently result in a decline in ETH valuation.

In anticipation of the London upgrade in August 2021, Ethereum was priced at $2,724 on August 4, surging to $2,821 on August 5 upon the upgrade's implementation and further rising by 11.7% to $3,151 by August 7.

Back in April 2021, ahead of the Ethereum Berlin upgrade, Ethereum was trading at $2,429 on April 14. On the day of the upgrade, April 15, the price of Ethereum saw a 3.5% increase, reaching $2,514.

Ethereum witnessed a decline following the recent Dencun upgrade deployment, although the leading proof-of-stake blockchain seemed to regain its stability later in the day.

"The saying goes that bull markets advance amidst concerns," noted Alex Thorn, Head of Research at Galaxy, in a previous conversation with Decrypt.