The Ethereum (ETH) blockchain successfully activated the long-awaited Dencun upgrade on March 13.
The Ethereum (ETH) blockchain successfully activated the long-awaited Dencun upgrade on March 13. This hard fork, the most significant since the Merge, is expected to pave the way for cheaper transactions on layer-2 scaling solutions.
Launched nearly a year after the Shanghai upgrade, Dencun incorporates nine improvement proposals (EIPs) targeting both the execution layer (transaction processing) and the consensus layer (network agreement). A key feature is the introduction of "data blobs" via EIP-4844, also known as proto-danksharding.
The benefits, however, won't be immediate for everyone. According to a report by Fidelity Investments, users seeking lower fees will likely need to use layer-2 solutions, which can involve trade-offs regarding decentralization and security. Ethereum mainnet gas fees remain high, hovering above 72 gwei, translating to significant costs for transactions like swaps and NFT sales.
The Dencun upgrade marks a positive step towards a more scalable Ethereum ecosystem. Following the upgrade, Ethereum (ETH) is currently trading at $3,995, falling slightly below the $4,000 level and down 1% over the past 24 hours. However, ETH is up 50% over the last month, as investors are optimistic over the Dencun upgrade and potential Ethereum ETF approval in May this year.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
