Cryptocurrency investors are facing an extremely important week, which includes some of the most significant days of March. Alongside upcoming macroeconomic data, the Ethereum Dencun upgrade will serve as a pivotal milestone. So why is Dencun important, and which altcoins, besides Ether, will benefit from it?
What is Ethereum Dencun?
Ethereum will celebrate the Dencun hard fork, a layer2 scaling solution, when it reaches the mainnet. The reason is clear: transaction costs will significantly decrease, and network activities will greatly expand. This means a rapid growth in the Total Value Locked (TVL) and active user charts. Indirectly, this will also help to increase token prices.
David Silverman, Vice President of Product at Polygon Labs, said that the latest update will start to be implemented by layer2 protocols within weeks. That means we will begin to see the results clearly by the end of March, starting from the 13th. As a result, many altcoins, including MATIC Coin, will have the opportunity to positively diverge during this process.
“In about a month and a half or two, every L2 that wants to use the blob space as a rollup will transition, and then users will see all the benefits.”
The Dencun hard fork includes nine different improvement proposals and is named Dencun as a combination of Ethereum’s execution layer upgrade Cancun and the consensus layer upgrade Deneb.
Layer2 Altcoins Set to Rise
The multi-chain future tells us a lot about today’s world, where Layer2 solutions cluster around Ethereum. David Silverman states that with the latest update, Ethereum has now clearly embraced this concept.
“This is an Ethereum roadmap item that says the future is really in rollups, as opposed to the base network being responsible for scaling. We will make changes to make them cheaper and more attractive for users and to become the standard carrier for Ethereum.”
The following altcoins are the most popular Ethereum l2 solutions and could benefit positively from the process by the end of March;
- Arbitrum (ARB)
- Starknet (STRK)
- Polygon (MATIC)
- OP Token
And there are many more cryptocurrencies.
