Dencun Upgrade Goes Live on Ethereum, Boosting Transaction Speed and Reducing Fees
Summary:
The much-awaited Dencun upgrade for Ethereum, which aims to cut gas charges and enhance speed through proto-dank sharding, was launched on March 13. The update has been received with both acclaim and skepticism in the crypto industry. Experts predict an increase in blockchain activity, and long-term growth in ETH's value due to the upgrade's advantage amidst tough competition. Also, Ether (ETH) recorded a 141% return over the last year, majorly due to the optimism around the Dencun upgrade and anticipated approval of spot Ether ETFs.
The long-awaited Dencun update for Ethereum, aimed at reducing gas fees via layer-2 solutions through proto-dank sharding, became operational on March 13, garnering a mix of praise and scepticism from various market players. Ruslan Lienkha, YouHodler's Head of Market, voiced his opinion, “I don't foresee a significant change in the price of ETH in the immediate future due to this upgrade. However, we might see heightened activity on the blockchain. I am confident that ETH will gain increased value in the long run as this upgrade will provide a competitive edge against other promising layer 1 blockchain projects."
CEO of Alluvial - a liquid staking development company, Mara Schmiedt, holds a bullish outlook on the Dencun upgrade, even in the short run. She stated, "Ethereum's scalability issues have been tackled with the Dencun upgrade. Given the latest surge in Bitcoin's institution-backed rise, coupled with a near $100 billion value locked in Ethereum's DeFi ecosystem, this scalability-focused upgrade is awaited by many." She continued with, "These scalability problems have obstructed Ethereum's wider-scale adoption by managing increasing users and transaction numbers."
OSL's Chief Operating Officer, Onno Sterk, considered the Dencun upgrade as a crucial highlight, allowing Ethereum to address important challenges that have held back the network's development for a while. "The crypto space, while transformative, has suffered from high transaction fees and restricted scalability," Sterk said. He further added that the core of the Dencun upgrade is based on addressing these issues effectively with proto-danksharding, a proactive methodology aimed at reducing transaction fees and boosting network speed. Sterk stated, "This development is crucial as it allows Ethereum to act as a reliable database for other blockchains, thereby fostering a more integrated and efficient digital asset ecosystem."
Ether (ETH) has delivered 141% returns over the past year, primarily due to optimism about the Dencun upgrade, persuaded by speculated approval of Ether exchange-traded funds (ETFs), and a general recovery in the crypto market. Speculators are hopeful of a positive outcome regarding the Ether ETFs from the U.S. Securities and Exchange Commission in May, however, optimism is not unanimous. Both Lienkha and Eric Balchunas, senior ETF analyst at Bloomberg, have voiced caution around an Ethereum ETF approval in May, warning that the likelihood is not as bright as some are hoping.
Meanwhile, Alluvial's Mara Schmiedt insists that to achieve meaningful Ethereum adoption, several factors like institutional acceptance, widely accessible use, and an effectual regulatory framework are all playing crucial roles. She further emphasized the importance of the active engagement of community members for Ethereum's success and encouraged everyone to contribute to shaping Ethereum's future with their professional perspectives and expertise.
Published At
3/13/2024 6:50:49 PM
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