Ethereum started the year on a positive note, hitting a high of $1.634 on Jan. 20. The price of the cryptocurrency is currently $1.621, up 4,50% in the past 24 hours. Ethereum has seen great support from its community and individual investors, as well as from major venture capital firms.
The ETH/USD pair opened at $1.5660 on Jan. 20 and continued to climb for the rest of the day reaching a high of $1.603 and a low of $1.544 before closing on Jan. 20 at a price of $1.564.
Here are three reasons why ETH could go higher in January:
The Ethereum blockchain will undergo the next scheduled upgrade, the Shanghai Upgrade, in March 2023. The upgrade will facilitate the gradual removal of staked ETH, which has been sitting on the Beacon Chain for more than two years. However, it will not solve gas tariff problems or improve smart contracts.
ETH traders on Bitcoin Pro they can detach their coins and send them to the Beacon Chain starting with the scheduled update. Ethereum has also been scaled via sharding. As a result, another scaling will be possible if the Shanghai upgrade is completed successfully. These improvements will increase the value of ETH/USD.
Credit score system linked to mainet
On January 17, Ethereum's first virtual machine (EVM), Masa Finance, announced the first soulbound identity mechanism for the Ethereum mainnet. The platform will make it easier to create soulbound tokens for Know Your Customer (KYC) verification, credit scores, and other Ethereum use cases.
MEX tries to solve the problems by introducing something new: decentralization. The SBT will be the center of everything going on in Masa's system and MEX seeks to provide the solution.
It is possible to create tokens on Ethereum with the project introducing this new protocol. This will ultimately benefit all users, especially those looking to secure their investments. These are just some of the many benefits that come with it.
Developments of the Ethereum network
On Jan. 18, a member of the Ethereum Name Service (ENS) DAO, an autonomous decentralized organization, proposed a governance model. Under the current plan, 10.000 ether (ETH) would be liquidated to pay operating expenses over the next two years. According to the proposal, even if ENS produces protocol revenue in ETH, the DAO is vulnerable due to its high exposure to a single volatile asset.
On Jan. 19, Messari tweeted about a recent collaboration between ENS and Coinbase to expand the platform's support for human-readable cb.id domains. The partnership would allow anyone with an Ethereum wallet to create an NFT in place of the alphanumeric blockchain address.