The Ethereum Cancun upgrade has been completed, and transaction fees on the Layer 2 network have indeed been significantly reduced by more than half. However, Ethereum and Layer 2 tokens such as ARB, OP, and MATIC did not rise, but fell. This has become the norm for almost every Ethereum upgrade:
A sharp rise before the upgrade: Before the upgrade, there is usually a sharp rise in the price of the token, and market expectations drive the price increase.
Compensatory increase after upgrade: After the upgrade is completed, the token price may not rise as expected, but may experience a certain degree of correction. However, as the market gradually digests the impact of the upgrade, there may be a compensatory increase in prices.
Fall during the upgrade: During the upgrade period, due to market uncertainty about the impact of the upgrade, token prices may trend downward, and investors will adopt a cautious attitude and wait for the upgrade to be completed before making decisions.
So while this happens every time, I am still bullish on Ethereum’s late-stage development. I think there is little suspense that Ethereum is expected to break through $5,000 and once again hit a new all-time high before at least June this year.
A sharp rise before the upgrade: Before the upgrade, there is usually a sharp rise in the price of the token, and market expectations drive the price increase.
Compensatory increase after upgrade: After the upgrade is completed, the token price may not rise as expected, but may experience a certain degree of correction. However, as the market gradually digests the impact of the upgrade, there may be a compensatory increase in prices.
Fall during the upgrade: During the upgrade period, due to market uncertainty about the impact of the upgrade, token prices may trend downward, and investors will adopt a cautious attitude and wait for the upgrade to be completed before making decisions.
So while this happens every time, I am still bullish on Ethereum’s late-stage development. I think there is little suspense that Ethereum is expected to break through $5,000 and once again hit a new all-time high before at least June this year.