Ethereum’s ‘Dencun’ Upgrade Set to Revolutionize Ecosystem: Altcoins on the Rise

Ethereum’s ‘Dencun’ hard fork enhances scalability, security, and usability.
Introduces ‘blob-carrying transactions,’ reducing Layer-2 fees significantly.
Deutscher highlights Polygon’s ($MATIC) potential amid Dencun upgrade.

In a recent Twitter thread, crypto investor and trader Miles Deutscher sheds light on Ethereum’s upcoming ‘Dencun’ upgrade, scheduled for March 13. This major hard fork aims to bolster Ethereum’s scalability, security, and usability as part of ‘The Surge’ on Ethereum’s roadmap, a series of updates focused on scalability.

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In detail, he lists the five updates to accompany the Dencun upgrade. Specifically, the Dencun upgrade bringing several key improvements include EIP-4844 to Increase scalability and EIP-1153 for lowered on-chain data storage costs. Additionally, EIP-4788 for enhancing security and functionality, EIP-5656 for improving EVM performance, and EIP-6780 for enhanced network security.

A pivotal change introduced by Dencun is Proto-Danksharding, specifically EIP-4844. Proto-Danksharding brings forth ‘blob-carrying transactions,’ a new transaction type that significantly reduces transaction costs for Layer-2 (L2) users while boosting Ethereum’s transaction throughput.

Deutscher emphasizes that this reduction in fees on Ethereum Layer-2s is unparalleled, making these chains more commercially viable for both dApp builders and users. The projected gas fees on ETH and L2s after EIP-4844 reveal the most substantial reduction in L2 gas fees to date.

This fee reduction is anticipated to make L2s a more attractive proposition compared to alternative Layer-1 solutions, acting as a positive catalyst for the entire ecosystem, from DeFi apps to gaming and on-chain trading.

While all ETH Layer-2s stand to benefit from Dencun, Deutscher highlights specific L2s with compelling ecosystem catalysts, pointing to Polygon ($MATIC) as an intriguing candidate. With imminent rebranding to POL, ongoing investment in zk tech implementation, and its relative lag compared to other L2s, Polygon is poised to be a strong performer in the coming weeks and months, according to Deutscher’s analysis.

Along with Polygon, he also highlights Arbitrum, Optimism, COTI Foundation, Mantle, Metis, Manta Network, Starknet, Linea, and ZkSync.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.