"The Cancun upgrade (Dencun) is another major mainnet upgrade after the Shanghai upgrade of Ethereum. So the market will naturally have expectations, and the Cancun upgrade will also bring some Aphla investment opportunities."
The biggest beneficiary of the Cancun upgrade is $ETH, which is heavily allocated.
$ARB $OP in L2 project.
Cross-chain bridge leader $RUNE $AXL $STG $CELER $SYN.
AA wallet $TWT $SFP $C98.
Decentralized storage network $FIL $AR.
What Aphla investment opportunities are contained in the Ethereum Cancun upgrade?
The Cancun upgrade (Dencun) is another major mainnet upgrade after the Ethereum Shanghai upgrade.
We know that the Shanghai upgrade successfully deployed to the main network in March this year gave birth to a wave of LSD and LSDfi super market. $LDO $RPL $SSV $LBR $PENDLE and other investment targets have become Aphla opportunities to outperform the market.
Therefore, the market will naturally have expectations, and the Cancun upgrade will also bring some Aphla investment opportunities.
But before discussing what Aphla investment opportunities are, let’s take a brief look at Cancun Upgrade
1. "What is Cancun Upgrade?"
The upcoming Cancun upgrade is divided into two parts: Deneb focuses on the consensus layer (CL), and Cancun targets the execution layer (EL).
According to a note provided by Ethereum core developer Tim Beiko, the Cancun meeting included five key Ethereum Improvement Proposals (EIPs) aimed at expanding data storage and reducing costs. They are:
--EIP-4844: Set the stage for full implementation of Danksharding and enhance scalability.
--EIP-1153: Reduce on-chain data storage costs and optimize block space.
--EIP-4788: Improve the structure of cross-chain bridges and staking pools.
--EIP-5656: Minor code modifications to the Ethereum Virtual Machine (EVM).
--EIP-6780: Remove SELFDESTRUCT, which may terminate smart contracts.
The most important feature of this upgrade is EIP-4844, which introduces Proto-Danksharding, an interim stage towards full Danksharding, which is expected to significantly reduce gas fees and increase transaction throughput by leveraging data "blobs".
Blobs, "binary large objects", are a data type used to store large data.
The implementation plan of EIP-4844 is to add a new TX type blob TX, which is dedicated to storing L2 Rollup to the Beacon chain consensus layer of the Ethereum main network. After the blob is stored there for 3 weeks, it is discarded to a decentralized storage network such as IPFS or a Web3 data service provider such as Alchemy.
The storage space of a single blob is 128KB. The initial setting of EIP-4844 is to plug in 4 blobs in 1 block, which will be expanded to 64 in the future.
2. "What are the functions of the Cancun upgrade?"
The Cancun upgrade brings substantial benefits to the Ethereum mainnet, including:
--Enhanced scalability: The introduction of Proto-Danksharding will help to process larger volumes of transactions at a faster speed, thus enhancing L2 projects that use Ethereum as a DA layer and security guarantee.
--Reduced gas costs: By leveraging data "blobs" and implementing EIP-4844, the Cancun upgrade can significantly reduce gas costs for L2 interactions.
--Enhanced security: With EIP-6780, the network's security infrastructure will be strengthened to protect user data and assets.
--Efficient data storage: EIP-1153 will optimize the data storage of the Ethereum chain and improve operational efficiency and cost-effectiveness, which is a big boon for L2 that relies on optimized data management.
--Enhance cross-chain bridge connectivity: Through the EIP-4788 upgrade, interoperability between different chains will be smoother and more secure
--Technological innovation: The subtle code modifications introduced through EIP-5656 have laid the foundation for future technological progress and may promote L2 innovation.
3. "What are the income sectors?"
--Ethereum. The Cancun upgrade will make the Ethereum network more adaptable, secure and user-friendly, solidifying its position in the Web3 space.
--L2s. The Cancun upgrade can not only significantly reduce the gas cost of L2 interactions, but also speed up the final confirmation of Tx, greatly improving the user experience.
--AA (Account Abstraction) wallet. Optimization of the infrastructure layer will also benefit the application layer, and AA Wallet is also a direct beneficiary of the Cancun upgrade. The Cancun upgrade will greatly reduce the creation and interaction gas fees of AA wallets, increase the speed of interaction confirmation (a major pain point of AA wallets), and improve user experience.
--Cross-chain bridge. Cross-chain bridges mainly benefit from the EIP-4788 upgrade, and EIP-4844 will also reduce the cost of using cross-chain bridges.
--Decentralized storage network. After the deployment of EIP-4844, blob data will eventually be permanently retained in decentralized storage networks such as IPFS. These blobs are gold mines for MEV robots, market makers, data companies and other institutions, and will bring benefits to decentralized storage networks. some new value.
4. “How to build a Cancun upgrade portfolio?”
First of all, I don’t think that because the Shanghai upgrade brought a wave of market conditions, the Cancun upgrade will definitely bring a new wave of market prices.
Whether the Cancun upgrade market can be established is constrained by the Federal Reserve's monetary policy cycle, the Bitcoin halving cycle, seasonal cycles, risk events and other factors.
The core skill in building an investment portfolio is to find a balance between odds and profit-loss ratio that suits you.
The decision to construct the Cancun upgrade investment portfolio in September should be based on the odds of opening a position at this time ≈ 50% and the profit-loss ratio > 3.
When building a Cancun upgrade portfolio, investment options to choose from include:
The biggest beneficiary of the Cancun upgrade is $ETH. Heavy warehouse configuration.
$ARB $OP in L2 project. They are the market consensus beneficiaries of the Cancun upgrade. The degree of Price In is higher than other targets.
The leader in the cross-chain bridge $RUNE $AXL $STG $CELER $SYN. Now ignored by the market. If after the Cancun upgrade, the gas fees and confirmation time of the cross-chain bridge increase beyond expectations, this sector will likely gain Alpha benefits.
AA wallet $TWT $SFP $C98. It is expected that the interactive experience of AA wallet will also benefit from the Cancun upgrade, and may improve beyond market expectations. It is a pity that the wallet has not been paid much attention by mainstream funds, and its allocation is light.
Decentralized storage network $FIL $AR. The market has almost completely ignored that decentralized storage networks will also benefit from the Cancun upgrade, and it is uncertain whether the market will ultimately recognize and accept this fact.
5 Conclusion
Everyone can choose the target that suits them according to their own situation and build an investment portfolio. If you understand the code, you can use the effective combination method to optimize the position ratio of the investment portfolio.
Here is relevant reading about the Ethereum Cancun upgrade:
Dozens of L2 public chains are vying for the top spot, what are the profit points of L2 explained in plain language?
Astonishing words! Vitalik revealed that every Layer 2 has a “backdoor”. Is it better to be safe or centralized?
One article captures the principles and project ambush of the L2 track!
The standard for a bear market to ambush 100 times coins, list 9 Tokens!
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✏️Disclaimer: This article is for reference only, DYOR
📄Source: Alpha Investment Research Agency, 0xNing0x
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