Developers Confirmed Dencun Upgrade
Ethereum developers have officially announced March 13 as the date for the much-awaited Dencun upgrade, setting in motion the countdown to some of the most significant modifications the blockchain will have seen since April 2023.
The Dencun upgrade is scheduled to activate at slot 8626176, which corresponds to 13:55 UTC on March 13, pending formal approval by developers and verification through GitHub, the open-source software platform.
Ethereum will introduce a novel transaction class known as “proto-danksharding” with the Dencun upgrade, designed to decrease transaction fees for rollups by utilizing data “blobs,” a new method for data storage.
The Holesky testnet implemented the Dencun upgrade on February 7, with Nethermind promptly announcing the development. It is anticipated to significantly reduce transaction fees on Ethereum’s layer-2 networks.
Testnets are designed to mirror the conditions of the mainnet, allowing developers to detect and fix glitches efficiently before the upgrade is released to the public, ensuring minimal disruption.
Possible ETH Price Reaction During Dencun
The Ethereum (ETH) price may experience a decline after the Dencun upgrade, potentially as a result of a ‘sell the news’ event, following the pattern observed with past major updates.
The Dencun upgrade, a fusion of the Cancun and Deneb upgrades, is poised to be Ethereum’s most significant enhancement since the Shapella upgrade in April last year, targeting enhancements in network scalability and refining the consensus layer of Ethereum.
Hot Take
Ethereum is gearing up for its much-anticipated “Dencun” upgrade, set to go live on the mainnet on March 13, bringing significant modifications to the blockchain. The upgrade is expected to introduce a novel transaction class and reduce transaction fees on layer-2 networks. While the upgrade may result in a decline in Ethereum prices initially, it is anticipated to have a positive long-term impact, potentially leading to a retest of the $2,000 level in March.
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