• Fidelity Digital Assets published a report stating that prospects of Ether (ETH) for the next 12 months and the long term are optimistic.
• The Ethereum network is gaining momentum due to increasing anticipation surrounding EIP-1153, an update to enhance the efficiency of smart contracts.
• An upcoming upgrade on Uniswap could be another positive catalyst for the Ethereum network.
Fidelity’s Positive Outlook
Fidelity Digital Assets recently released a report titled “Q2 2023 Signals Report” which highlighted a notable 15% rise in the quantity of active Ethereum validators during the second quarter. Additionally, Fidelity expressed their positive long-term outlook on ETH due to its higher burn rate compared to coin issuance, increasing amount of new addresses engaging in transactions, and potential reduction in transaction fees through Dencun upgrade.
The proposed update EIP-1153 is believed to have great importance for both the Ethereum network and decentralized exchanges (DEXs). This alteration known as “transient storage opcode” would strengthen the design of the Ethereum Virtual Machine, lower expenses, and enhance smart contract efficiency. Data from DefiLlama revealed that Ethereum’s market dominance has decreased from 60% to 46% over past six months; implementating this update will be crucial in helping regain this lost market share attributed to high gas fees.
Another upcoming event that will likely benefit Ether is an upgrade on Uniswap DEX. This upgrade is said to reduce transaction costs when trading tokenized assets by reducing liquidity pool deposits and margin positions liquidity requirements by up to 75%. Furthermore, it allows users access more information about tokenized assets before making trades while also providing additional leverage features for traders who are willing to take risks with their capital.
In conclusion, there are many factors that suggest Ether has a bright future ahead – particularly with Fidelity Digital Assets‘ optimistic outlook combined with its higher burn rate compared to coin issuance as well as increasing network adoption and anticipated updates such as EIP-1153 and Uniswap upgrades. All these factors point towards strong potential growth for Ether over next 12 months and beyond.