‘Dencun’ upgrade officially deployed on Ethereum mainnet, ETH price remains below $4,000
Ethereum (ETH) is complete Dencun, a major software upgrade that makes leveraging the network ecosystem more cost-effective. The update specifically targets layer 2 (L2) networks interconnected with Ethereum, such as Arbitrum (ARB), Polygon (MATIC), and Coinbase Base.
With Dencun, transaction costs on these networks have been significantly reduced, with fees dropping from dollars to cents or even pennies.
Ethereum Dencun Upgrade and Cost Savings
Considered the most significant change to Ethereum’s end-user experience, the Dencun upgrade is expected to significantly reduce costs, thereby facilitating the development of new applications and services.
NewsBTC reported Tuesday’s update introduced a new data storage system, moving away from the traditional approach of storing layer 2 data on Ethereum itself. Adopting new “Blob” storage reduces data storage costs because information is only stored for approximately 18 days rather than indefinitely.
One notable benefit of the Dencun upgrade is its impact on decentralized exchanges (DEXs) and gas costs. For example, the expected gas costs of popular layer 2 networks such as Arbitrum, Optimism, and Coinbase’s Base will be significantly reduced.
The expected savings highlight the pivotal role of this upgrade, with Arbitrum’s swap reducing from $2.02 to $0.40, Optimism’s swap from $1.42 to $0.28, and Coinbase’s Base swap from $0.58 to $0.01.
With the upgrade successfully launched on mainnet, Ethereum Foundation core developer Tim Beiko said: express His satisfaction and claims about the work accomplished:
Dencun is the most complex fork we’ve released since the Merge and, along with Byzantium, has the “highest total EIP of any fork.” The process involved more teams than ever before, and somehow everything went smoothly… ! I am grateful to be able to work with them all on my next project.
Blob trading and price changes
Layer 2 Network Arbitrum provided insight into the upgrade process. that It will take approximately 1 to 2 hours for blob transaction publishing to begin and for new price changes specified in EIP-4844 to take effect.
ArbOS Atlas, an upgrade supporting Arbitrum Chains, will introduce additional fee reductions for Arbitrum One, which will be activated on March 18th. The updated configuration includes layer 1 The (L1) surplus fee is reduced from 32 gwei per compressed byte to 0, and the L2 base fee is reduced from 0.1 gwei to 0.01 gwei.
The Dencun upgrade provides cost-saving opportunities for the layer 2 network and addresses congestion issues by freeing up more space on the Ethereum network for additional space. work. Upgrades provide increased efficiency, but at the cost of no longer maintaining a complete record of all data indefinitely.
However, as layer 2 networks embrace this new update to the Ethereum ecosystem, the stage is set for adoption, usage, and wider accessibility within the Ethereum community and the underlying protocol.
Dencun Upgrade Fails to Push ETH Above $4,000
Despite the successful upgrade, price of ETH It remained unaffected and continued to consolidate below the $4,000 threshold. The token attempted to break above this important resistance level on Monday and Tuesday but failed to sustain its position above it.
For over 24 hours now, ETH has been trading between $3,930 and $3,970. Nonetheless, it is worth noting that ETH has maintained its upward momentum, rising by over 18% over the past 14 days and nearly 60% over the past 30 days.
Additionally, the introduction of the Dencun upgrade is expected to result in more drives. demand For ETH, it has the potential to trigger a new uptrend that could close the gap between the current trading price and the previous all-time high (ATH) of $4,878 reached in November 2021.
Featured image from Shutterstock, chart from TradingView.com
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