Ethereum is approaching its long-awaited Dencun upgrade. This upgrade is seen as an important step towards solving Ethereum’s scalability problem. It is also expected to have a significant impact on altcoins. In this article, we will explain what the Dencun upgrade includes and how it will affect L2 solutions. We will also examine what consequences it may have for altcoins such as MATIC, Arbitrum, Optimism, COTI Network, Mantle and Metis.
Ethereum update may benefit those altcoins
Cryptocurrency analyst Miles Deutscher talked about Ethereum (ETH)’s upcoming Dencun upgrade. He suggests that this development could be a significant growth catalyst for certain altcoins. Deutscher predicts that Proto-Danksharding and other EIPs introduced by Dencun will accelerate the adoption of Layer-2 (L2) solutions as they significantly reduce transaction fees and increase Ethereum’s scalability. According to the analyst, the altcoins that will benefit the most are as follows:
- MATIC: With its investment in zk technology and the upcoming POL brand, MATIC can stand out in the L2 market.
- Arbitrum: Arbitrum, which already has impressive metrics, attracts attention. It becomes an even more attractive option with Dencun.
- Optimism: Optimism, the second largest L2 in terms of TVL, stands out. It continues to grow, especially with its airdrops and processing power.
- COTI Network: Privacy-focused L2 solution COTI stands out with its V2 version and ‘Garbled Circuits’.
- Mantle: Fast-growing Mantle is becoming a major player in the liquid staking market with mETH.
- Metis: With the Metis Ecosystem Fund and decentralized sequencer launch, Metis has a solid foundation for growth.
Effects of Dencun:
- L2 transaction fees will drop: EIP-4844 will significantly reduce transaction fees in L2s, making these solutions more attractive.
- More dApps and users: Low fees are driving dApp developers and users to turn to L2s. Hence, it will stimulate the overall growth of the Ethereum ecosystem.
- Advantage against Alt-L1s: As the appeal of L2s increases, they will become a more attractive alternative to sub-L1s.
- General catalyst: Dencun will act as a positive catalyst for the entire ETH/L2 ecosystem such as DeFi, gaming and on-chain trading.
Dencun, an important step
The Dencun upgrade represents an important step towards solving Ethereum’s scalability problem. This upgrade is expected to accelerate the adoption of L2 solutions. It is also expected to create a significant growth opportunity for altcoins such as MATIC, Arbitrum, Optimism, COTI Network, Mantle and Metis. However, this news is written based on Miles Deutscher’s tweets and analysis. Therefore, it should not be interpreted as investment advice. It’s important to do your own research before making any investment decisions.
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