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While ethereum developers are getting closer to shipping Dencun, some experts are not convinced the upgrade will deliver on its promises.
Days before Dencun is scheduled to roll out to the ethereum mainnet, two industry veterans offered differing opinions on the impact of this long-awaited upgrade amid skyrocketing Ether (eth) prices.
crypto market hype and euphoria pushed eth to another two-year high as the cryptocurrency crossed $4,000 for the first time since late 2021, at the peak of the previous bull cycle.
Core DAO, Wormhole Experts on ethereum Upgrade
ethereum developers have said that Dencun will implement greater data availability for layer 2 solutions like Arbitrum and Optimism, allowing for improved transaction capacity with lower gas fees.
Rich Rines, early contributor to Core DAO, said in a statement received by crypto.news that the focus on ethereum L2 may harbor unexpected issues related to liquidity and on-chain fragmentation.
While this should allow for higher TPS on the network as a whole, questions remain as to whether this is a long-term solution. Overreliance on layer 2 could lead to fractured ecosystems and liquidity, as activity moves away from the base layer. Additionally, Layer 2s may involve more trust assumptions and may have a suboptimal influence on the base layer if transactions and fees are increasingly removed from the base chain.
Rich Rines, Early Core DAO Contributor
Rines noted that observers should closely monitor Dencun's progress after deployment, which is expected on March 13, barring unforeseen delays. The Core DAO contributor also said that questions may arise about whether the goal of the update was the right goal in the first place.
On the other hand, wormhole Foundation co-founder and CCO Robin Burkey views Dencun optimistically and hopes the upgrade heralds a massive surge in cross-chain asset transfers.
The Dencun upgrade is undoubtedly a positive development for the crypto space. This update will really improve the scalability and security of ethereum, which bodes well for defi and overall interoperability. This will result in cheaper, easier asset movement and more affordable transactions on ethereum.
Robin Burkey, co-founder and COO of Wormhole Foundation,
Burkey opined that the Dencun upgrade will bolster the usage, accessibility, and vibrancy of Defi, as cheaper fees should incentivize greater on-chain participation in the larger decentralized ecosystem of cryptocurrencies.