What is Ethereum Dencun Update in simple words?
There will be no complicated terminology here, just clear language for the average web3 user.
Let's dive in 👇
As you know, on March 13, we expect a Dencun update on the Ethereum network. The crucial improvements that everyone expects are:
• Network infrastructure expanding
• Gas fees reduction
Let's break it down in more detail:
By expanding network infrastructure, I mean increased attention to L2 networks.
Everyone knows there are faster and cheaper transactions, but if these networks become even more efficient after the upgrade, can you imagine what will happen?
The leaders among the rollups are Arbitrum and Optimism.
If we take into account the gas fee reduction in these networks by dozens of times, it will significantly increase the number of users in the networks, and accordingly, it will be reflected in the main network.
Now remember such new networks as Scroll and zkSync.
They are still fresh and development is underway there.
Teams of these networks understand the importance of the main network update and will adjust the release of their products to take into account all the new developments.
We can only assume that the major coin prices of the L2 networks will rise.
I won't stop promoting that the current bull market is the era of L2 solutions and the development of the Ethereum ecosystem as a whole.
In general, everything is interrelated and each parameter complements the other.
If there are cheap transactions, then there will be an expansion of the entire ecosystem, which will contribute to new dApps and new attention from users.
Don't forget about the increased demand for ETH, users will be forced to buy this coin to interact with protocols and networks.
And of course, the most important thing is the Ethereum ETF.
I believe this update will encourage its adoption.
To summarize, this long-awaited improvement will bring new money and new liquidity to the market.
I have a strong belief that we could see more than $10k for 1 ETH in the next few years.
