This increase could be attributed to Ethereum’s transition to proof-of-stake (PoS) consensus, known as the ‘Merge,’ which occurred in September 2022. Because of the new consensus mechanism’s implementation, some of the ETH transaction fees are now being burned, resulting in Ethereum becoming a deflationary currency.
Furthermore, deflationary currencies are particularly appealing because they are considered scarce digital assets. This scarcity is viewed as a driver of an asset’s value, making it an attractive funding option for crypto enthusiasts.
Another eagerly anticipated Ethereum enhancement, the Shanghai-Capella enhancement, also known as the Shapella enhancement, is scheduled to launch on April 12, 2023.
One of the crucial components of this enhancement is Ethereum Improvement Proposal (EIP) 4895, which will introduce validator staking withdrawals to the primary community. Following the Merge improvement, this function was left out of Ethereum’s transition to proof-of-stake (PoS) consensus in September 2022.
The current value of ETH is around $1,816.52 per coin. The asset’s value has risen by 26% in the last seven days, indicating vital progress.