Ethereum’s Dencun upgrade will significantly improve blockchain efficiency and scalability, with a launch date of March 13. Transaction fees on Ethereum’s layer 2 solutions are expected to be reduced by at least 10 times, which will increase profitability. Analyst Wolf predicts a potential 500% bull run for Ethereum, pushing its price towards $14,000, following the Dencun upgrade.
Ethereum’s long-awaited Dencun update is set to revolutionize the blockchain sector. Scheduled for March 13, this update introduces a number of improvements to increase efficiency and scalability across the board.
A central aspect of the Dencun update is the implementation of nine Ethereum Improvement Proposals (EIPs), among which EIP-4844, or proto-danksharding, stands out.
Ethereum Transaction Fees Will Be Drastically Reduced
The innovative proposal –danksharding introduces blob bearer transactions. This novel approach dramatically reduces data storage at the consensus layer by storing data off-chain and referencing it using a hash. It simplifies transaction verification and significantly reduces your data storage footprint, as blobs are not permanent and become inaccessible after about three weeks.
The implications of these improvements are profound, especially for Ethereum Layer 2 (L2) solutions. In fact, the update is expected to reduce transaction fees by at least 10 times. This will be a radical change to make Ethereum more scalable and profitable.
This reduction in fees will reduce transaction costs to just $0.02. This is in stark contrast to the current average of $0.23. This development may accelerate the adoption of the Ethereum scaling roadmap. In fact, lower costs will make L2 solutions much more attractive and competitive. Head of Research at IntoTheBlock Lucas Outumuro noted the following:
“This long-awaited upgrade is forecast to cut costs for Ethereum’s L2s by at least 10x, making Ethereum more scalable and efficient. By leveraging rollups and temporary blob storage, the developers aim to increase throughput and reduce fees for users.”
It is worth noting that the L2 solutions sector presents strategic divergences, with Arbitrum and Optimism adopting opposite expansion approaches.
Arbitrum’s Orbit is focused on building Layer 3 (L3) networks that leverage the existing liquidity and applications of its L2 ecosystem. On the other hand, Optimism’s strategy involves deploying multiple L2s in parallel to serve a broader range of applications.
ETH Price Prediction: A New Uptrend Has Started
As Ethereum embarks on a new chapter, it lays the foundation for a transformative breakthrough. One that could redefine the future of blockchain technology and raise its market valuation to new heights.
Crypto analyst “Wolf” pointed out Ethereum’s current bullish trends and how the upgrade potential signals a golden opportunity for investors:
“The chart for ETH is incredibly bullish. Ignoring the clear 18-month accumulation phase, reminiscent of previous cycles that have resulted in substantial gains, would be a missed opportunity of significant proportions.”
From Wolf’s insightful analysis, Ethereum appears poised for an explosive 500% bull run, which could push its price towards an unprecedented $14,000. As the Dencun upgrade approaches, the hype around Ethereum is increasing, becoming more accessible and affordable for users around the world.
According to CryptoPredictions, Ethereum started February 2024 at $2,282,486 and is expected to end the month at $1,899,156. During February, the expected maximum price of ETH is $2,694,438 and the minimum is $1,832,218.
ETH price for today (11.02.2024) is forecast to be in the price range of $2,080,488 – $3,059,541. Ethereum price is expected to end at $2,447,633 today.
By Leonardo Perez