Layer-2 DeFi platforms on the Ethereum Blockchain network have shown strong network activity over the past week, leading to a strong price increase in DeFi tokens. This comes as Ethereum gears up for the Dencun upgrade, which will bring major improvements in network security, scalability and functionality.
Rise in coins with Ethereum update
Following the Unsiwap announcement last week, Defi tokens have gained attention from AI tokens, especially those associated with the Ethereum Layer-2 scalability platform. Some of the top DeFi tokens that have witnessed strong price increases and trading activity include $UNI, $COMP, $COTI, $SUSHI, and $AAVE.
Joining the bandwagon recently, Mantle (MNT) recorded a 20% gain in the last 24 hours. As of press time, Mantle is trading at $0.95 with a market cap of over $3 billion, and its 24-hour trading volume is up 200% to over $175 million.
MNT is witnessing a significant development
One of the most important features of Mantle Network is that it aims for compatibility with the Ethereum Virtual Machine (EVM). Its modular architecture divides process execution, data availability and process accuracy into separate modules, allowing individual upgrades and integration of the latest advances. While Mantle (MNT) has witnessed significant expansion, it has staked over $1.5 billion in Ethereum as mETH (Mantle Staked ETH). As a result, it plans to provide attractive airdrops for mETH stakers.
Ethereum Dencun upgrade benefits L2s
A key component of Ethereum’s ambitious initiative “The Surge”, the Dencun upgrade introduces a series of Ethereum Improvement Proposals (EIPs) aimed at improving the efficiency and functionality of the network. Of noteworthy importance is EIP-4844, which introduced Proto-Danksharding, a groundbreaking development for Ethereum’s scalability.
One of the key features of EIP-4844 is the introduction of “blob-carrying transactions”, a new transaction type that significantly reduces transaction costs for users on layer-2 (L2) networks and, as a result, increases Ethereum’s transaction throughput.
What will this development indicate?
This significant drop in fees on Ethereum Layer-2s is expected to be a major milestone in reducing gas fees, making L2 chains an attractive option for both decentralized application (dApp) developers and users. As a result, layer-2s are positioned to surpass alternative layer-1 solutions in terms of attractiveness and adoption. The consequences of the Dencun upgrade will reverberate across the entire Ethereum ecosystem and impact decentralized finance (DeFi) applications, gaming platforms, and various other industries.
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