Bittime - In the world of cryptocurrency , network efficiency and scalability are crucial factors for growth. Ethereum, one of the leading blockchains, is preparing to launch the Dencun upgrade on March 13, 2024. This upgrade is predicted to be a significant starting point for Ethereum's future, especially regarding more affordable transaction fees.
According to a research report from Fidelity Digital Assets, the Dencun upgrade offers hope for near-zero transaction costs for users of Layer 2 (L2) solutions. This has the potential to attract more new users into the Ethereum ecosystem.
Furthermore, this upgrade marks the first step in Ethereum's rollup-focused roadmap. Rollup is a Layer 2 scaling technique that allows efficient processing of transactions outside the main Ethereum blockchain, then the results are summarized and stored on the main blockchain. With Dencun , the Ethereum network will serve as a powerful database, while increasing the efficiency and cost-effectiveness of data storage for Layer 2 blockchains.
Ethereum Dencun: Reducing Costs for L2 Blockchains
Analyst Max Wadington wrote that the Dencun upgrade will provide the scaling capabilities necessary to accommodate millions of users on Layer 2 blockchains. Thus, Ethereum is positioned as a distributed database that is better suited to other blockchains. This upgrade is anticipated to attract more users into the Ethereum ecosystem and expand the network's total potential market (TAM).
Additionally, this upgrade will reduce costs for Layer 2 blockchains to store data on the main network. This cost reduction is expected to be passed on to users through lower transaction fees.
Check Today's Crypto Market:
Understanding Ethereum Dencun As a Layer 2 Solution
Layer 2 solutions are separate blockchains that are built on top of Layer 1, or the base layer, to address scalability issues and manage data efficiently. However, this upgrade is not expected to provide significant benefits to Ethereum users directly. The promised fee reduction for Layer 2 users will not apply to those making transactions on the underlying Ethereum blockchain.
Wadington explained that in the short term, users who want to take advantage of these fee adjustments will need to compromise on the level of decentralization and security by conducting transactions on a Layer 2 solution instead of directly on the Ethereum network. Therefore, this upgrade will likely encourage more users to bridge their assets to other platforms.
The report adds that conducting transactions on Ethereum for application-specific purposes will remain the preferred option in the medium term, especially as the Layer 2 platform matures.
Ethereum Price Surge Accompanies Dencun Upgrade
Ahead of the Dencun upgrade, Ethereum price showed a significant increase. Ethereum surpassed the $3,000 mark and surged above $3,900 earlier this week, reaching its highest value in nearly two years.
Investor sentiment reflects optimism related to Dencun's upcoming upgrade and potential approval by the United States Securities and Exchange Commission (SEC) of Ethereum exchange-traded funds (ETFs). Additionally, on-chain data revealed that nearly $200 million of ETH was burned in the past week, reducing the altcoin's circulating supply and potentially driving prices up further.
According to CoinGecko data, Ethereum is currently trading at $3,789, up 8% in the past week. It is worth noting that the number two cryptocurrency by market capitalization has surged more than 60% over the past month.
Ethereum Price ETH/IDR Today
Source: Bittime.com
On March 12 2024, the price of ETH (Ethereum) was at IDR 63,455,639 per coin, an increase of 4% in 24 hours.
Also Read How to Buy Crypto:
A Bright Future with Ethereum Dencun
The Dencun upgrade marks an important milestone in Ethereum's journey. With a focus on Layer 2 scaling, these upgrades are expected to take Ethereum to greater heights in terms of efficiency, lower transaction fees, and greater appeal to users and developers.
While there is a trade-off between decentralization and transaction costs in current Layer 2 solutions, Dencun's upgrade is a promising first step towards a brighter future for Ethereum. Dencun paves the way for wider adoption and continued growth in the blockchain ecosystem.
Check Crypto Prices Today:
How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethereum (ETH) is available on Bittime with the market pair ETH/IDR . To be able to buy ETH/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor price chart movements for Ethereum (ETH) , Bitcoin (BTC) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
BTC (Bitcoin) Price Soars 10%, Best Daily Achievement Since October 2023
Buy ETH: Large Transaction of 97,276 ETH Makes Crypto Community Uproar
Buy USDT: The Stablecoin That Reaches $100 Billion Market Cap
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.