Altcoin Price Boom With Ethereum ‘Dencun’ Upgrade

Table of Contents

Prominent crypto analyst Miles Deutscher has emphasized the significance of this major hard fork upgrade, underscoring its potential to propel the overall ecosystem forward. He also shared his top picks for alternative cryptocurrencies expected to benefit from the imminent changes.

Ethereum Dencun Upgrade To Increase L2 Appeal?

The Dencun upgrade, an integral part of Ethereum’s roadmap initiative named “The Surge,” introduces a series of Ethereum Improvement Proposals (EIPs) aimed at enhancing the network’s efficiency and functionality. Particularly noteworthy is EIP-4844, which introduces Proto-Danksharding, a novel development designed to boost Ethereum’s scalability.

According to Deutscher’s analysis, a key enhancement brought about by EIP-4844 is the introduction of “blob-carrying transactions,” a novel transaction type that substantially lowers transaction costs for both Layer-2 (L2) users, thereby increasing Ethereum’s transaction throughput.

This reduction in fees on Ethereum Layer-2s is anticipated to be the most significant decrease in gas fees ever observed, rendering L2 chains an appealing choice for decentralized application (dApp) developers and users alike. Consequently, Deutscher posits that Layer-2s are positioned to surpass alternative Layer-1 solutions in terms of attractiveness and adoption.

The ramifications of the Dencun upgrade extend across the entire Ethereum ecosystem, impacting decentralized finance (DeFi) applications, gaming platforms, and on-chain trading alike.

While the Dencun upgrade is expected to benefit all ETH Layer-2s, Deutscher singles out specific L2 altcoins that not only stand to gain from EIP-4844 but also boast unique ecosystem catalysts.

Top Altcoins Poised For Growth

Leading the list is Polygon (MATIC), currently undergoing a rebranding to POL and making substantial investments in adopting ZK technology. Deutscher sees Polygon as a potential standout performer in the upcoming weeks and months.

Arbitrum (ARB), presently the foremost L2 in Total Value Locked (TVL), maintains impressive metrics, making it a preferred choice for launching new dApps.

Optimism (OP), the second-largest L2 by TVL, is also emphasized by Deutscher. He notes its resilience in transaction volume and highlights its recent announcement of a fourth airdrop, which is likely to reignite interest and activity within its ecosystem.

Deutscher identifies COTI (COTI) as another promising contender. With the introduction of its privacy-centric ETH L2, V2, and innovative “Garbled Circuits,” COTI offers enticing prospects for safeguarding privacy on the blockchain.

Experiencing rapid growth, Mantle (MNT) has amassed over $1.5 billion worth of Ethereum staked as mETH (Mantle Staked ETH). Deutscher foresees appealing airdrop opportunities for mETH stakers.

Metis (METIS) presents a series of positive developments, including a substantial $400 million Ecosystem Fund, the imminent alpha mainnet launch of its decentralized sequencer, and an ongoing Liquid Staking Blitz campaign.

Deutscher’s analysis emphasizes the importance of keeping a close eye on other notable L2s, such as Manta Network, Starknet, zksync, and LineaBuild. These platforms exhibit promising activity and demonstrate potential for substantial growth.

While the Dencun upgrade is a few weeks away, Ethereum enthusiasts eagerly anticipate the projected mainnet rollout in March. Given the positive market performance thus far, Deutscher remains optimistic about further growth and encourages investors to consider the potential benefits offered by Ethereum and its associated altcoins.