Kaiko’s latest Data Debrief highlights the Ethereum network’s Dencun upgrade, eliciting a blend of anticipation and turbulence within the market. This upgrade promises decreased transaction fees and improved scalability, fueling optimism among investors. Despite the upgrade’s smooth execution, both ETH and Layer 2 tokens have encountered a notable decline amid broader market fluctuations.

Consequently, at the press time, Ethereum’s price stands at $3,254.98, reflecting a decrease of 8.97% in the last 24 hours, with a trading volume surpassing $28 billion. Despite earlier forecasts of Ethereum surpassing Bitcoin in value, ETH has persistently lagged behind, not only trailing BTC but also SOL, the native token of the Solana network, which has established itself as a strong contender.

Moreover, Ethereum’s underperformance is juxtaposed against a surge in trading volume, reaching multi-year highs exceeding $10 billion daily. This surge suggests a resurgence of trader activity, potentially indicating renewed confidence in the market.

In parallel, the closure of the ‘Alameda Gap’ marks a significant milestone in market recovery, with liquidity nearly restored to pre-FTX levels after a prolonged period of dormancy following the collapse of FTX and its sister company Alameda.

Additionally, Binance’s reliance on zero-fee trading pairs has surged to nearly 40% of total volume, driven by increasing FDUSD volumes benefiting from promotional campaigns. Currently offering 17 zero-fee trading pairs, Binance’s strategy underscores its competitive edge in attracting traders.

Meanwhile, the Bitcoin to gold ratio is nearing its all-time high, highlighting Bitcoin’s outperformance relative to gold despite recent record highs for both assets. This trend is further emphasized by the influx of $11 billion into bitcoin ETFs since their launch, contrasting with outflows from physically-backed gold ETFs.

Analyzing the 60-day BTC/Gold correlation reveals fluctuations between positive and negative territory, with notable exceptions during events such as the COVID market crash, where correlation reached an all-time high.

Ethereum’s Dencun upgrade has triggered market turbulence, underscored by ETH’s underperformance against BTC and SOL. However, rising trading volumes and the closure of liquidity gaps signal renewed activity and confidence in the market. Additionally, the increasing BTC-Gold correlation suggests shifting investor preferences amid evolving market dynamics.