Ether (ETH), the native token of the second-biggest blockchain network, Ethereum, has crossed the $4,000 mark for the first time since 2021. In the past year, the cryptocurrency has grown by over 178% and is close to its all-time high of $4,878, according to the cryptocurrency tracking website CoinGecko.
The Ethereum network, which is the home of most decentralized finance (DeFi) projects, went through a major upgrade in September 2022, also known as the Merge. This week, the blockchain network will go through another important upgrade, known as Dencun, which is expected to improve the performance of the network.
Why does this matter? Enhancement and scalability in the overall blockchain network significantly reduce transaction fees, which helps cryptocurrency’s overall acceptance and hence increases its price.