Ethereum Embraces Dencun Upgrade, Transaction Fees Drop
Last week, Ethereum celebrated the introduction of the highly anticipated Dencun upgrade, which resulted in a significant reduction in transaction fees across various layer-2 protocols. Meanwhile, Bitcoin (BTC) experienced a dip below the $65,000 mark, while spot Bitcoin ETFs continued to break new records, achieving peak trade volumes.
Ethereum Welcomes Dencun Upgrade
The Ethereum network successfully implemented the Dencun upgrade, signaling the beginning of “The Spurge.” The update went live on March 13, as scheduled by developers.
Following the upgrade, crypto.news reported a substantial decrease in average transaction fees across multiple Ethereum layer-2 protocols. On March 14, Zora experienced a 99% drop in average costs, amounting to $0.003 per transaction. Within the same timeframe, Optimism recorded a 98.8% collapse in fees, settling at $0.035 per transaction. Base also witnessed a similar decline, with fees dropping to $0.035.
Arbitrum, on the other hand, maintained the same fee level as the protocol opted not to implement blobs yet. Instead, they revealed their plans to introduce blobs through the upcoming ArbOS update.
MicroStrategy Expands Bitcoin Holdings
Reports from the beginning of the week indicated that MicroStrategy had increased its Bitcoin holdings, acquiring $821 million worth of the cryptocurrency during its price discovery phase.
The broader crypto market experienced a rollercoaster ride throughout the week. Bitcoin started the week strong, eventually reaching a new all-time high of $73,750 on March 14 due to extensive accumulation by long-term holders and whales.
The rest of the market followed the upward trend, leading to a rapid spike in the global crypto market cap. Dogecoin (DOGE) also gained attention when it rallied by 11% after Elon Musk suggested the asset could be used as a payment method for Tesla.
However, both DOGE and the rest of the market declined as BTC faced intense selling pressure above the $73,000 mark. The leading cryptocurrency dropped to a low of $67,000 on March 15, with ITB analysts warning of a more significant correction.
Bitcoin’s correction continued into the next day, with the asset falling below $65,000 on March 16, hitting a 10-day low of $64,780. However, BTC found support at this price level and subsequently recovered above $67,000.
Market analysts remain optimistic, with veteran trader Kevin Svenson expecting BTC to reach $83,000 after the upcoming halving scheduled for next month.
Solana and BOME Outperform the Market
Despite the market-wide downtrend, Solana (SOL) and its associated meme tokens, including Book of Memes (BOME), continued to achieve significant gains.
Solana saw an impressive 10% increase within a 24-hour period, with meme coins like Jupiter (JUP) and dogwifhat (WIF) experiencing rapid surges.
Book of Memes, a newly launched Solana-based meme coin, also capitalized on the upward trend in the Solana ecosystem. The asset spiked by 345% in the 24 hours leading up to March 16 and experienced a staggering 39,000% surge from March 14 to 16.
Spot Bitcoin ETFs Maintain Record Figures
The spot Bitcoin ETF market garnered considerable attention this week as investment products continued to see high demand. Reports confirmed that the crypto market received a record $2.7 billion inflow last week.
Spot Bitcoin ETFs continued to break records, with the purchase of 14,261 Bitcoin tokens on March 12, surpassing the 900 BTC produced by miners on the same day.
Market experts at Bitcoin mining firm Luxor Technology revealed that investors have shifted their focus from crypto mining stocks to these products. Despite the demand, Vanguard’s outgoing CEO maintained a bearish stance on the products.
UK Court Rules Craig Wright is Not Satoshi
In the COPA vs. Craig Wright case, the UK High Court ruled that Craig Wright is not the founder of Bitcoin, Satoshi Nakamoto, despite his persistent claims.
COPA aimed to prevent Wright from filing further lawsuits against community figures who debunked his claims. This week, the UK court ruled that the evidence indicates Craig Wright is not Satoshi.
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