Ethereum’s Cancun upgrade has become a hot topic of discussion in the crypto community, but unlike expectations, the upgrade did not cause significant fluctuations in the price of ETH.
A careful analysis of the reasons shows that the launch of BTC ETF and the capital concentration effect it brings are a factor that cannot be ignored. It attracts a large amount of funds, causing funds to concentrate in BTC.
The key to investing is to foresee the future rather than dwell on the past or the present.
Today, we’ll take a closer look at the possible impacts of Cancun’s upgrade.
Areas benefiting from Cancun’s upgrade include:
Ethereum L2 layer: such as OP, ARB, STRK, MANTA, METIS and other already issued projects, as well as some zk series projects that have not issued coins. The L2 layer is undoubtedly the key area of focus for future airdrop activities.
Storage sector: After the upgrade, L2 will need to explore other ways to store historical transaction data.
LSD and re-pledge fields: such as EigenLayer, Renzo, EigenPie and other unissued currency projects.
The concentration of funds in Bitcoin may indicate an early start to the market. Typically, large-scale moves occur after the Bitcoin halving, but now it seems that the move has arrived early. One possibility is that the market will remain high until the Bitcoin halving. After ETH applies for ETF, a new round of market rotation may occur.
In the past, the Ethereum ecosystem has been criticized for its high handling fees. After this upgrade, the market is paying attention to whether the handling fees will decrease.
In addition, the upgrade of Ethereum may be a challenge for other public chains. Over the years, so-called "Ethereum killers" have emerged every year, but after a few years, the Ethereum ecosystem is still prosperous and developing.
This is expected to cause the market share of other public chains to further shrink, validating the old saying: “The king will always be the king.”
By the way, as Bitcoin continues to rise, the Inscription sector is also worthy of attention. Projects such as ORDI, SATS, RATS, etc. are all worthy of investors' attention.
