As investors keep a close watch on the potential approval of spot Ethereum ETFs, attention is currently directed towards the imminent Ethereum Dencun upgrade. Scheduled for March 13, this upcoming enhancement is anticipated to wield significant influence, potentially bolstering various players within the Ethereum ecosystem.

Exploring the potential ripple effects, let’s delve into how the Ethereum Dencun upgrade stands to benefit other Layer-2 platforms within the Ethereum ecosystem.

The Ethereum Dencum Upgrade

Get ready for the ‘Dencun’ upgrade, set to roll out on March 13, marking a significant hard fork update aimed at boosting the Ethereum network’s scalability, security, and user-friendliness. As part of Ethereum’s roadmap initiative, dubbed ‘The Surge,’ this upgrade is a pivotal step forward in scalability enhancements.

Here’s what you can expect from the Dencun upgrade:

EIP-4844: Boost scalability.
EIP-1153: Cutting down on-chain data storage expenses.
EIP-4788: Elevating security and functionality.
EIP-5656: Fine-tuning EVM performance
EIP-6780: Improving network security.

The standout feature in Dencun is the implementation of Proto-Danksharding. With EIP-4844 (Proto-Danksharding), a new transaction type called ‘blob-carrying transactions’ is introduced, reducing transaction costs for both L2 users and ramping up Ethereum’s transaction throughput.

Popular crypto analyst Miles Deutscher explains that the Ethereum Dencun upgrade will reduce transaction fees on Layer-2 platforms by a considerable magnitude. The analyst also emphasizes the increased commercial viability for dApp developers and users. This shift will position L2s as more appealing options compared to alternative L1s, offering a positive catalyst across various sectors such as DeFi applications, gaming platforms, and on-chain trading.

Layer-2 Platforms That Benefit From Dencun Upgrade

Although several Layer-2 platforms will benefit from the Ethereum Dencun upgrade, Miles Deutscher shares his coveted list of those platforms that he thinks will benefit the most.

Polygon (MATIC): Deutscher noted that $MATIC currently finds itself in a compelling position. It’s on the verge of rebranding to POL. Despite lagging behind other L2s, there’s been notable investment in implementing zk technology. Considering these factors, Deutscher believes $MATIC could emerge as a strong performer in the weeks or months ahead.
Arbitrum: Arbitrum’s metrics remain impressive, solidifying its position as a preferred chain for launching new dApps. Maintaining its status as the top L2 in terms of Total Value Locked (TVL), Arbitrum also boasts transaction volume that outpaces other L2 solutions.
Optimism: Optimism ranks as the second-largest L2 by Total Value Locked (TVL), closely following Arbitrum, and it has demonstrated robustness in transaction processing. Recently, the platform unveiled its fourth airdrop, which is expected to reignite interest and activity within the ecosystem.
COTI Network: COTI has unveiled V2, an Ethereum Layer 2 (L2) solution focused on privacy, featuring the introduction of ‘Garbled Circuits.’ This innovative technology offers an efficient method for maintaining privacy, marking the blockchain’s maiden implementation of such a feature.
Mantle: Mantle is currently among the rapidly expanding Layer 2 solutions. With over $1.5 billion worth of ETH staked as mETH (Mantle Staked ETH), it ranks as the third-largest LSD (Layer 2 Staked Deposit) after Lido and RocketPool. Moreover, mETH stakers can anticipate some promising airdrops in the near future.
Metis: Metis is experiencing a wave of favorable developments that are propelling its growth forward. Notable among these is the establishment of the 4.6 million $METIS Ecosystem Fund, signaling a significant injection of $400 million into the ecosystem. Additionally, the upcoming launch of the decentralized sequencer alpha mainnet in March promises to further enhance the platform’s capabilities and usability. Moreover, the implementation of the LSB (Liquid Staking Blitz) campaign is poised to bolster participation and engagement within the Metis community.

Miles Duestscher stated that he’s keeping a close watch on other Layer-2 Networks such as Manta Network, Starknet, zkSync, and Linea.

The post Ethereum Dencun Upgrade: Which Layer-2 Platforms Will Benefit the Most? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am