The Ethereum Foundation stated that the highly anticipated Dencun upgrade has been “successfully activated on all testnets” and is scheduled to be deployed to mainnet by March 13th. According to the February 27 statement, it is 269568.
According to the foundation, this upgrade will bring significant changes, including the introduction of temporary data blobs with EIP-4844. This is also known as “protodanksharding” and is expected to reduce the blockchain’s Layer 2 network transaction fees.
Ethereum ‘coming of age’
Grayscale Investments believes that the Dencun upgrade represents the “maturity” of Ethereum as it will dramatically improve its competitiveness in terms of scalability.
Grayscale described ETH’s poor performance compared to competing smart contract-based networks over the past year as an “adolescent phase” and argued that the Dencun upgrade would allow the network to grow.
The company emphasized that Dencun will play a critical role in addressing Ethereum’s historical challenges, including slow transaction speeds, low throughput, and high fees, while enhancing the scale of its modular design.
These improvements will help close the gap between ETH Layer-2 solutions like Optimism and Arbitrum and Solana, potentially tripling Layer-2 operating margins.
Grayscale also highlighted how protocols like EigenLayer can benefit the wider industry by democratizing the concept of “security as a service.”
“EigenLayer adds value to Ethereum by diversifying its utility and strengthening its position as the primary security layer for the broader cryptocurrency ecosystem,” Grayscale said.
price surge
Over the past month, the price of ETH has risen more than 42% to over $3,000, with observers suggesting the rise was fueled by optimism surrounding the spot Ethereum ETF.
However, Grayscale says this price increase may be due to the impending Dencun upgrade and the hype surrounding the promised improvements.
The company said:
“We believe recent price performance reflects market expectations for this upgrade, as Ethereum (up 26% YTD) has outperformed the broader smart contract platform sector (up 3% YTD) since January 1.”
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