Ethereum’s forthcoming ‘Dencun’ upgrade, set for March 13, is poised to significantly enhance the network's scalability, security, and usability. Crypto analyst Miles Deutscher highlighted the upgrade's potential to advance the ecosystem, also noting altcoins likely to gain from these developments.
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The Dencun upgrade will introduce a series of Ethereum Improvement Proposals (EIPs) to bolster network efficiency and functionality. A key feature, ‘proto-danksharding,’ aims to reduce transaction costs for layer-2 (L2) blockchains and decrease data availability costs. This is achieved through a novel compressed data storage mechanism called ‘blobs.’
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Substantially reducing gas fees on Ethereum L2s, this innovation could potentially make them a more attractive option for decentralized application (dApp) builders and users alike and position Layer 2 solutions as more desirable alternatives to L1 platforms, leading to greater adoption.
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While noting that all ETH L2s stand to benefit from Dencun, Deutscher specifically points out several L2 altcoins that stand out due to their unique ecosystem catalysts.
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Deutscher specifically highlighted Polygon (MATIC)—which is undergoing a rebranding to POL and making significant investments in Zero-Knowledge (ZK) technology—as a noteworthy example. He believes Polygon could emerge as a strong contender in the blockchain space in the upcoming weeks and months.
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He also notes several other projects, including @0xPolygon, @COTInetwork, @0xMantle, and @MetisL2, as worth watching for potential growth spurred by the upgrade.
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