Ethereum’s Dencun Upgrade: Advancing Scalability, Security, and Usability
The highly anticipated Dencun upgrade of Ethereum (ETH), set to take place on March 13, promises significant advancements in the scalability, security, and usability of the Ethereum network. Renowned crypto analyst Miles Deutscher highlights the potential of this major hard fork upgrade to propel the entire ecosystem forward. Moreover, Deutscher shares his top altcoin picks that are poised to benefit from the upcoming changes.
Ethereum Dencun Upgrade Enhances Layer-2 Appeal
The Dencun upgrade is part of Ethereum’s roadmap initiative known as “The Surge.” It introduces a series of Ethereum Improvement Proposals (EIPs) that improve the efficiency and functionality of the network. EIP-4844 takes center stage by introducing Proto-Danksharding, a new development for Ethereum’s scalability.
- EIP-4844 introduces “blob-carrying transactions,” reducing transaction costs for Layer-2 (L2) users and increasing Ethereum’s transaction throughput.
- This reduction in fees on Ethereum Layer-2s is expected to be the most substantial decrease in gas fees ever witnessed, making L2 chains more attractive for decentralized application (dApp) builders and users.
- Deutscher suggests that Layer-2s will outshine alternative Layer-1 solutions in terms of attractiveness and adoption.
Top Altcoins Ready for Growth
Deutscher highlights several specific altcoins within the ETH Layer-2 ecosystem that have unique catalysts and can benefit from the Dencun upgrade:
- Polygon (MATIC), undergoing rebranding to POL and investing in ZK technology, is expected to perform strongly in the coming weeks and months.
- Arbitrum (ARB), the leading L2 in Total Value Locked (TVL), is a preferred choice for new dApp launches.
- Optimism (OP), TVL’s second largest L2, has shown resilience in transaction volume and recently announced its fourth airdrop, renewing interest and activity.
- COTI (COTI) offers promising prospects for privacy preservation on the blockchain with its privacy-centric ETH L2, V2, and “Garbled Circuits.”
- Mantle (MNT) has accumulated over $1.5 billion worth of Ethereum staked as mETH (Mantle Staked ETH) and is expected to offer attractive airdrops for mETH stakers.
- Metis (METIS) showcases positive developments, including a substantial $400 million Ecosystem Fund and upcoming mainnet launch of its decentralized sequencer.
Deutscher also advises monitoring other notable L2s, such as Manta Network, Starknet, zksync, and LineaBuild, as they exhibit promising activity and growth potential. As the Dencun upgrade approaches, Ethereum enthusiasts eagerly await the mainnet rollout in March. With positive market performance thus far, Deutscher believes there is further room for growth and encourages investors to consider the potential benefits offered by Ethereum and its associated altcoins.
Hot Take: Ethereum’s Dencun Upgrade Sets the Stage for Growth 📈
The upcoming Dencun upgrade of Ethereum brings forth significant advancements that will enhance scalability, security, and usability. By introducing Proto-Danksharding through EIP-4844, this upgrade makes Layer-2 solutions more appealing and reduces transaction costs. As a crypto enthusiast, you should keep an eye on the top altcoins that are poised to benefit from this upgrade:
- Polygon (MATIC) undergoing rebranding to POL
- Arbitrum (ARB), the leading L2 in TVL
- Optimism (OP), TVL’s second largest L2
- COTI (COTI) with its privacy-centric ETH L2, V2
- Mantle (MNT) offering attractive airdrops for mETH stakers
- Metis (METIS) with positive developments and a substantial Ecosystem Fund
Don’t forget to explore other notable L2s as well. With the Dencun upgrade just around the corner, Ethereum and its associated altcoins have the potential for further growth. Stay informed and seize the opportunities that lie ahead in the crypto market.
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