In a highly anticipated development, ethereum's (eth) upcoming 'Dencun' upgrade, scheduled for March 13, is set to deliver significant advances in the scalability, security, and usability of the ethereum network.
Renowned crypto analyst Miles Deutscher has highlighted this important hard fork upgrade, highlighting its potential to drive the entire ecosystem forward and sharing its top altcoin picks poised to benefit from the upcoming changes.
ethereum Dencun Upgrade to Increase L2 Appeal?
The Dencun upgrade, part of the ethereum roadmap initiative known as “The Surge”, presents a series of ethereum improvement proposals (EIB) that reinforces the efficiency and functionality of the network. EIP-4844 stands out by introducing Proto-Danksharding, a new development for ethereum scalability.
According to Deutscher analysisOne of the key improvements offered by EIP-4844 is the introduction of “bearer blob transactions”, a new type of transaction that significantly reduces transaction costs for Layer 2 (L2) users and increases the throughput of bearer blob transactions. ethereum.
This reduction in ethereum Layer-2 fees is expected to be the most substantial decrease in gas fees ever witnessed, making L2 chains a compelling option for both creators and users of decentralized applications (dApps). ). Consequently, Deutscher suggests that Layer 2s are poised to eclipse alternative Layer 1 solutions in appeal and adoption.
The implications of the Dencun upgrade extend to the entire ethereum ecosystem, spanning decentralized finance (DeFi) applications, gaming platforms, and chain trade.
While all eth Layer-2 will benefit from Dencun, Deutscher highlights several specific L2 altcoins that possess unique ecosystem catalysts alongside the advantages presented by EIP-4844.
Major altcoins poised to grow
First on the list of altcoins is Polygon (MATIC), which is undergoing a name change to POL and has made significant investments in the implementation of ZK technology. Deutscher believes Polygon could come into its own in the coming weeks and months.
Next, Arbitrum (ARB), currently the leading L2 in Total Locked Value (TVL), continues to show important metrics, making it the preferred choice for new dApp launches.
Deutscher also highlights Optimism (OP), TVL's second largest L2, which he says has also demonstrated resilience in transaction volume and recently announced its fourth airdrop, likely renewing interest and activity in its ecosystem.
According to Deutscher, COTI (COTI), with the introduction of its privacy-focused eth L2, V2, and “Fuzzy Circuits,” offers promising prospects for preserving privacy on the blockchain.
Rapidly growing Mantle (MNT) has amassed over $1.5 billion in ethereum staked as mETH (Mantle Staked eth), and Deutscher suggests it will offer attractive airdrops for mETH stakers.
Metis (METIS) is showing a variety of positive developments, including a major $400 million ecosystem fund, the upcoming launch of its decentralized sequencer on alpha mainnet, and the ongoing Liquid Staking Blitz campaign.
Finally, Deutscher's analysis urges investors to closely monitor other notable L2s, including Red MantaStarknet, zksync and LineaBuild, as they exhibit promising activity and growth potential.
While the Dencun upgrade is still a few weeks away, ethereum enthusiasts are eagerly anticipating the long-awaited mainnet launch in March. With positive market performance so far, Deutscher believes there is more room for growth and encourages investors to consider the potential benefits offered by ethereum and its associated altcoins.
eth is trading at $2,947, up 1.6% in the last 24 hours, with more gains expected as the update approaches.
Featured image from Shutterstock, chart from TradingView.com
