The Ethereum blockchain is at the heart of a major transformation with the introduction, since yesterday, of the Dencun upgrade. This technological advancement promises not only to improve the efficiency and capacity of Ethereum, but also to significantly boost the performance of its Layers 2, key components for the scalability of the platform. This article explores the ramifications of this upgrade and assesses the future prospects for the Ethereum ecosystem as a whole.
When Dencun boosts Layers 2 of Ethereum before its launch!
As the Ethereum community eagerly anticipated the Dencun upgrade, tokens associated with certain Ethereum Layers 2 saw notable gains. This was particularly the case for Optimism, Polygon and Arbitrum. The latter was the most dynamic of the three.
Indeed, ARB, the crypto associated with this Layer 2, jumped 7.5% in one week, reaching a valuation of around $2. As one of the leading Ethereum Layer 2 scaling solutions, Arbitrum commands $16 billion in assets on its platform for approximately 41% of the scaling solutions market share. layer 2 scale.
Like Arbitrum, Optimism does not fare poorly. This protocol behind the optimization of transactions concerning ETH, has also experienced a remarkable 30% increase in the valuation of OP, its native asset. During the same weekly period, its price reached $4.17.
The trend is similar for Polygon which in turn mobilizes 30% of the Layers 2 market share, for a market capitalization of $11.5 billion. This, while its native crypto MATIC reached a price of $1.24, reflecting an increase of 18% during the week.
Meanwhile, ether itself has seen a moderate surge, recently rising 1.2%. While the crypto traded above $4,000, it dipped slightly to hover around $3,890. This nevertheless represents a substantial increase compared to the previous week.
All this indicates a positive dynamic of the Ethereum ecosystem. And analysts are unanimous in saying that the Dencun upgrade is the source even though it had not even been deployed. Now that the latter is now operational, they maintain their optimism about the positive prospects of the Ethereum ecosystem.
What next, now that Dencun is launched?
Yesterday, Wednesday March 13, the Dencun upgrade was operationalized. This, without any technical incident. With this development, what next for the Ethereum ecosystem? It must be said that overall, optimism reigns among analysts. Max Wadington, an analyst at Fidelity Digital Assets Research, is convinced of one thing about this upgrade. This is because it has nothing in common with those deployed so far.
Certainly, the Dencun update introduces EIP 4844 and improves the underlying architecture of Ethereum to boost data processing efficiency. An improvement which should make it possible to considerably reduce the operational costs of Layers 2 and reduce transaction costs by up to 75%. Which, in more than one way, will benefit both developers and users.
But fundamentally, many analysts like Max Wadington consider the Dencun update to be a crucial event for the evolution of the network. Because, unlike previous updates, it represents a significant shift towards supporting other blockchains. Above all, it supports the transactional capacity and scalability of the whole while maintaining the decentralization and security characteristics of the latter.
Overall, the Dencun upgrade brings substantial improvements to Ethereum’s efficiency. This, by exploiting the potential of Layers 2. Therefore, analysts consider this update as a crucial step not only in the continued development of Ethereum, but also for its contribution to the blockchain ecosystem, more broadly. Other experts go a long way.
With its innovations, Ethereum would overtake Bitcoin!
This idea, seemingly far-fetched when we know the explosive trend of bitcoin (BTC) in recent months, is defended by Haipo Yang, the CEO of the crypto platform CoinEx. The latter is optimistic about Ethereum’s potential to overtake Bitcoin. This, during the current crypto boom!
The boss believes that the dynamics of the Ethereum ecosystem, and its transition to proof of stake are the key factors that would lead it to surpass Bitcoin. Along the same lines, it emphasizes the resilience, ethics and adaptability of blockchain.
Furthermore, Yang highlights that innovation, the deflationary mechanism and the expansion of Ethereum applications are other catalysts that will allow its valuation to outperform that of Bitcoin. Certainly, he recognizes the existence of tough competitors like Solana. But for him, Ethereum’s established ecosystem and developer loyalty are its defining assets.
In sum, Yang’s bullish outlook for Ethereum highlights the platform’s potential to reshape crypto market dynamics. Which, in his opinion, sets the stage for a potential change in dominance from Bitcoin to Ethereum. Regardless, the Bitcoin blockchain currently reigns supreme in the crypto market, despite BTC dropping substantially by 2.36% over the past 24 hours.
Conclusion
Overall, speculation surrounding the Dencun update has propelled Ethereum to new heights, demonstrating the effectiveness and relevance of this major development. The remarkable gains recorded by tokens associated with Layers 2 such as Arbitrum, Optimism and Polygon, reflect widespread optimism about the future of the Ethereum blockchain. In this context, some analysts even envisage the possible supremacy of Ethereum over Bitcoin. Which underlines their growing confidence in the ability of this ecosystem to redefine the crypto landscape. All things being equal, the Dencun upgrade marks a crucial step forward in the technological evolution of this platform.
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