In an eagerly anticipated development, Ethereum’s (ETH) upcoming ‘Dencoon’ upgrade, scheduled for March 13, is poised to bring significant advancements to the scalability, security, and usability of the Ethereum network.
Renowned cryptocurrency analyst Miles Deutscher highlighted this key point. hard fork upgrade, We highlight their potential to advance the entire ecosystem and share our picks of the best altcoins poised to benefit from the coming changes.
Ethereum Dencun Upgrade to Increase L2 Attractiveness?
The Dencun upgrade, part of the Ethereum roadmap initiative known as “The Surge,” is a series of Ethereum improvement proposals (EIP) enhances the efficiency and functionality of the network. EIP-4844 attracts attention by introducing Proto-Danksharding, a new development for Ethereum scalability.
According to Deutscher analyzeOne of the key improvements provided by EIP-4844 is the introduction of a new transaction type, “Blob Forward Transaction,” which significantly reduces transaction costs for both Layer 2 (L2) users and increases transaction throughput on Ethereum.
The fee reduction in Ethereum Layer-2 is expected to be the largest reduction in gas fees ever seen, making the L2 chain an attractive choice for decentralized application (dApp) builders and users alike. As a result, Deutscher suggests that Layer 2 is poised to surpass alternative Layer 1 solutions in terms of appeal and adoption.
The Dencun upgrade means that decentralized finance (DeFi) applications, gaming platforms and On-chain transactions.
While all ETH Layer-2 can benefit from Dencun, Deutscher highlights a few specific L2 altcoins that have unique ecosystem catalysts along with the benefits provided by EIP-4844.
Best altcoins for growth
First on the list of altcoins is Polygon (MATIC), which is in the process of being rebranded as POL and has made significant investments in implementing ZK technology. Deutscher believes Polygon can deliver strong performance in the coming weeks and months.
Next is Arbitrum (ARB), the current L2 leader. total value locked (TVL) continues to show significant metrics, making it a preferred choice for new dApp launches.
OP (Optimism), the second largest L2 in TVL, was also highlighted by Deutscher. Deutscher has also shown resilience in terms of trading volume and recently announced its fourth airdrop, which is likely to spark renewed interest and activity in the ecosystem.
According to Deutscher, COTI (COTI) offers a promising prospect for protecting privacy on blockchains by introducing privacy-focused ETH L2, V2, and “Garbled Circuits.”
The fast-growing Mantle (MNT) has accumulated over $1.5 billion in Ethereum staked with Mantle Staked ETH (mETH), and Deutscher indicated that it will offer an attractive airdrop to mETH stakers.
Metis (METIS) presents a number of positive developments, including a sizable $400 million ecosystem fund, the upcoming alpha mainnet launch of the decentralized sequencer, and the ongoing Liquid Stake Blitz campaign.
Finally, Deutscher’s analysis urges investors to closely monitor other notable L2s, including: manta networkStarknet, zksync, and LineaBuild show promising activity and growth potential.
Although the Dencun upgrade is weeks away, Ethereum enthusiasts are eagerly anticipating the expected mainnet launch in March. With the positive market performance to date, Deutscher believes there is more room for growth and encourages investors to consider the potential benefits offered by Ethereum and related altcoins.
ETH is trading at $2,947, up 1.6% in the last 24 hours, with further gains expected as the upgrade approaches.
Featured image from Shutterstock, chart from TradingView.com