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The ethereum Foundation said the long-awaited Dencun upgrade has been “successfully activated on all testnets” and is scheduled to be deployed to the mainnet on March 13, at the time. 269568, according to a report dated February 27 ethereum.org/2024/02/27/dencun-mainnet-announcement”>statement.
According to the Foundation, the update will usher in significant changes, including the introduction of ephemeral data blobs with EIP-4844. This is also known as “protodanksharding” and is expected to reduce transaction fees on the blockchain's Layer-2 network.
ethereum 'coming of age'
Grayscale Investments believes that the Dencun upgrade represents ethereum's “coming of age” as it will dramatically improve its competitiveness in terms of scalability.
Grayscale described eth's poor performance compared to rival smart contract-enabled networks over the past year as its “teenage phase,” arguing that upgrading Dencun would allow the network to grow.
The firm emphasized that Dencun would be instrumental in addressing ethereum's historical challenges – slow transaction speeds, low throughput, and high fees – while improving its modular design expansion.
This improvement could close the gap between Layer-2 eth solutions like Optimism and Arbitrum versus Solana and potentially triple the operating margins of these Layer-2s.
Additionally, Grayscale highlighted how protocols like EigenLayer could democratize the concept of “security as a service” to benefit the industry as a whole.
“EigenLayer accrues value for ethereum by diversifying its utility and strengthening its position as a fundamental security layer for the broader crypto ecosystem,” Grayscale said.
Price increase
Over the past month, the price of eth has risen more than 42% to over $3,000, with observers suggesting the run was fueled by optimism around a potential ethereum spot ETF.
However, Grayscale indicated that this price increase could also be attributed to the impending Dencun update and the hype generated by the promised improvements.
The firm said:
“We believe recent price performance reflects market anticipation of this upgrade, as ethereum (up 26% YTD) has outperformed the broader smart contract platform sector (up 3% YTD) since January 1.”
The post ethereum Developers Confirm Mainnet Deployment of Dencun Upgrade, Grayscale Calls It eth's 'Coming of Age' Moment appeared first on CryptoSlate.
