Ethereum"Dencun"Final test success; positive market reaction for layer 2 stocks

Completed implementation on Holesky

On the evening of the 7th, the next upgrade to the blockchain of the crypto asset (virtual currency) Ethereum (ETH), “Dencun,” was successfully launched on the final testnet “Holesky.”

We have blobs on Holesky!

Another un-eventful testnet fork for the books pic.twitter.com/uuvrkqJaAI

— ethPandaOps (@ethPandaOps) February 7, 2024

Due to successful implementations in all three test environments, Ethereum’s core development team will hold an online meeting on February 8th (US time) to decide on a date for the mainnet upgrade.

According to preliminary forecasts, the mainnet launch date is expected to be set between the end of February and the beginning of March 2024.

connection:What are the importance and benefits of Ethereum’s next upgrade “Dencun”?

Highlights of Dencun

Ethereum’s latest upgrade, EIP-4844, introduces protodunk sharding, which improves the communication efficiency of rollup technology. Previously, Rollup stored raw data on Ethereum as “calldata,” but this improvement allows it to temporarily store data in the form of “blobs.” It partitions and stores data efficiently, reducing costs while maintaining data availability.

Ethereum has faced criticism over fees, but the data blob concept introduced in the Dencun upgrade aims to address and overcome these issues.

A successful mainnet upgrade would be particularly advantageous for layer 2 rollup chains. According to a report from Coinbase in the US at the end of 2023, it is estimated that Proto-Dunk Sharding reduces the transaction fees of L2 scaling solutions such as Optimism (OP) and Arbitrum (ARB) by 2-10 times.

Looking at market trends, Bitcoin (BTC) rose 3% from the previous day, while Ethereum’s price increased by only 2.2% (at the time of writing). On the other hand, Layer 2 stocks have continued to perform well, recording an increase of approximately 10% compared to the previous week.

Ethereum L2 major stocks Top rate of increase (compared to previous week)

In early January, “TVL” and “transaction volume”, indicators of Layer 2 network activity, increased rapidly due to expectations for the Dencun upgrade.

connection:Arbitrum (ARB) exceeds Ethereum in DEX trading volume, L2 token hits record high

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