Bittime – The crypto is buzzing again with increased activity following theDencunon theEthereum.
Dencun, predicted to be the most important update to the Ethereum ecosystem in almost a year, introduces a new way to store data on the notoriously congested Ethereum blockchain .
The update is expected to cut transaction fees on the layer-2 (L2) network to just a few cents, hopefully sparking activity and attracting more applications to the Ethereum network.
Despite this, the performance of layer-2 crypto tokens has been mixed post Dencun's launch.
Strengthening Layer-2 Crypto
The native tokens of Polygon (MATIC) and Arbitrum (ARB) have seen increases of 6%-7% in the last 24 hours. A similar increase occurred in the Starknet (STRK) token which jumped 6% after weakening before Dencun was active.
The Metis token (METIS) even jumped 2%, exceeding the CoinDesk 20 index (CD20) increase of 1.5%.
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Weakening Layer-2 Crypto
Optimism (OP) only experienced an increase of less than 2% after surging almost 10% before Dencun was active. Online gaming-focused Immutable X (IMX) saw a 6% decline.
Celo (CELO) even fell 7%. Meanwhile, the price of Ethereum's native token, Ether (ETH), is relatively stagnant at around $4,000.
Experts from QCP Capital warned of a potential ETH price correction after expectations for Dencun eased, coupled with the decreasing likelihood of approval of a physical Ether asset-based ETF in the United States in the near future. A correction in the crypto market is usually defined as a price drop of at least 10%.
Nonetheless, Dencun overall provides a breath of fresh air for the future of Ethereum and the layer-2 network built on top of it.
With lower transaction fees, the Ethereum network is expected to become more efficient and attract more users and activity.
However, we need to continue to observe how the long-term performance of layer-2 crypto tokens will be after the launch of Dencun.
Also Read: TokenFi Launchpad: A New Era of Fundraising Coming Soon!
A Look at the Future of Ethereum and Layer-2 Networks
The launch of Dencun marks a promising new chapter for Ethereum. Cheaper transaction costs are predicted to have a positive impact on several aspects, namely:
1. Increased Adoption
Lower transaction fees will make Ethereum and the layer-2 network built on top of it more attractive to new users. This could trigger a significant increase in adoption, especially for DeFi (Decentralized Finance) and NFT (Non-Fungible Token) applications.
2. The emergence of new applications
With more affordable transaction fees, developers will be encouraged to build innovative applications on top of the Ethereum network.
This could lead to the birth of a richer and more diverse ecosystem, attracting more users and investment into the network.
3. Network Efficiency
Dencun has the potential to reduce Ethereum network congestion which has been a scourge. With lower transaction fees, users will tend to make smaller and more frequent transactions, thereby increasing overall network efficiency.
Also Read: Bitcoin Breaks New ATH Record Up to IDR 1.13 B as ETF Gobbles Up Supply
Things to Watch Out For
However, there are also several challenges to be aware of:
1. L2 Competition
Ethereum is not the only player in the blockchain space. Other layer-2 networks such as Solana and Avalanche also offer low transaction fees and high speeds.
Ethereum needs to continue to innovate and improve its technology to maintain a competitive advantage.
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2. Crypto Regulation
The crypto industry still faces uncertainty from a regulatory perspective. Strict regulations could hinder the growth and adoption of Ethereum and layer-2 networks.
3. Network Security
While switching to a new data storage system, Ethereum network security needs to be continuously monitored and improved to prevent potential cyberattacks.
Dencun represents a significant step forward for Ethereum. Lower transaction costs have the potential to usher in a new era of innovation and wider adoption.
Although challenges remain, the future of Ethereum and the layer-2 network built on top of it looks promising.
Crypto enthusiasts need to continue to monitor technological developments, regulations, and competition in the blockchain space to see how Dencun will impact the crypto industry as a whole.
How to Buy Polygon (MATIC) on Bittime
You can buy and sell Polygon (MATIC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Polygon (MATIC) is available on Bittime with the market pair MATIC/IDR . To be able to buy MATIC 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 Polygon (MATIC) on Bittime .
Monitor the price chart movements of Polygon (MATIC) , Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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MATIC Staking: Definition, Benefits & Tutorial
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Complete Guide on How to Stake AXEL (AXEL)
DISCLAIMER : This article is informational in nature and is not an offer or solicitation 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.
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