In an eagerly anticipated development, Ethereum’s (ETH) upcoming ‘Dencun’ upgrade, scheduled for March 13, is poised to bring about significant advancements in the scalability, security, and usability of the Ethereum network.
Renowned crypto analyst Miles Deutscher has highlighted this major hard fork upgrade, highlighting its potential to propel the entire ecosystem forward and sharing his top altcoin picks poised to benefit from the upcoming changes.
Ethereum Dencun Upgrade To Increase L2 Appeal?
The Dencun upgrade, part of Ethereum’s roadmap initiative known as “The Surge,” introduces a series of Ethereum Improvement Proposals (EIPs) that bolsters the network’s efficiency and functionality. EIP-4844 takes the spotlight by introducing Proto-Danksharding, a new development for Ethereum’s scalability.
According to Deutshcer’s analysis, one of the key improvements offered by EIP-4844 is the introduction of “blob-carrying transactions,” a new transaction type that significantly reduces transaction costs for both Layer-2 (L2) users and increases Ethereum’s transaction throughput.
This reduction in fees on Ethereum Layer-2s is expected to be the most substantial decrease in gas fees ever witnessed, making L2 chains a compelling choice for decentralized application (dApp) builders and users alike. Consequently, Deutscher suggests that Layer-2s are poised to outshine alternative Layer-1 solutions in attractiveness and adoption.
The implications of the Dencun upgrade extend across the entire Ethereum ecosystem, spanning decentralized finance (DeFi) applications, gaming platforms, and on-chain trading.
While all ETH Layer-2s stand to benefit from Dencun, Deutscher highlights several specific L2 altcoins that possess unique ecosystem catalysts alongside the advantages presented by EIP-4844.
Top Altcoins Poised For Growth
First on the altcoin list is Polygon (MATIC), which is undergoing a rebranding to POL and has made significant investments in implementing ZK technology. Deutscher believes Polygon could emerge as a strong performer in the coming weeks and months.
Next, Arbitrum (ARB), currently the leading L2 in Total Value Locked (TVL), continues to show significant metrics, making it a preferred choice for new dApp launches.
Optimism (OP), TVL’s second largest L2, is also highlighted by Deutscher, which he says has also shown resilience in transaction volume and recently announced its fourth airdrop, likely renewing interest and activity in its ecosystem.
According to Deutscher, COTI (COTI), with the introduction of its privacy-centric ETH L2, V2, and “Garbled Circuits,” offers promising prospects for preserving privacy on the blockchain.
Mantle (MNT), which is experiencing rapid growth, has accumulated over $1.5 billion worth of Ethereum staked as mETH (Mantle Staked ETH), and Deutscher suggests it will offer attractive airdrops for mETH stakers.
Metis (METIS) showcases a range of positive developments, including a substantial $400 million Ecosystem Fund, the upcoming alpha mainnet launch of its decentralized sequencer, and the ongoing Liquid Staking Blitz campaign.
Lastly, Deutscher’s analysis urges investors to closely monitor other notable L2s, including Manta Network, Starknet, zksync, and LineaBuild, as they exhibit promising activity and potential for growth.
While the Dencun upgrade is a few weeks away, Ethereum enthusiasts eagerly anticipate the expected mainnet rollout in March. With positive market performance thus far, Deutscher believes there is further room for growth and encourages investors to consider the potential benefits offered by Ethereum and its associated altcoins.
ETH is trading at $2,947, up 1.6% in the past 24 hours, with more gains expected as the upgrade draws closer.
Featured image from Shutterstock, chart from TradingView.com