Ethereum Developers Announce Upcoming Dencun Upgrade on Testnets
Ethereum developers have made an exciting announcement regarding the upcoming Dencun upgrade. Tim Beiko, an Ethereum core developer, revealed that more testnet blobs are on their way, with Dencun set to activate on the Sepolia testnet on Jan. 30 and the Holesky testnet on Feb. 7. Beiko urges node operators on these networks to update their systems in preparation for the upgrade. If these tests go smoothly, Ethereum Dencun will be scheduled for deployment on the Ethereum mainnet.
According to Beiko, Goerli blobs were recently launched as Dencun went live on the Goerli testnet on Jan. 17. Now, the Sepolia and Holesky testnets are set to undergo the Dencun upgrade over the next two weeks. Dencun will activate on Sepolia on Jan. 30 at 10:51 p.m. UTC and on Holesky on Feb. 7 at 11:35 a.m. UTC.
Exciting New Changes in the Dencun Upgrade
The eagerly anticipated Dencun upgrade includes significant changes to Ethereum’s consensus and execution layers. The most notable change is the implementation of ephemeral data blobs with EIP-4844, also known as “protodanksharding”. This implementation is expected to cut L2 transaction fees, making Ethereum even more efficient and cost-effective.
Analyst Predicts Momentum for Ethereum in Coming Weeks
Crypto analyst Michael Van de Poppe predicts that Ethereum’s momentum might significantly pick up in the following weeks. He presents three key arguments to support his claim. First, the recent bottoming out of Bitcoin could act as a catalyst for altcoins to resume their upward trend, benefiting Ethereum. Second, the buzz around the potential launch of an Ethereum Spot ETF is creating anticipation and excitement in the market. Finally, Ethereum’s plan to implement new upgrades that are expected to lower transaction fees by 90% is generating positive sentiment among investors.
ETH’s Market Share and Open Interest Dominance
According to data from Glassnode, BTC perpetual swaps accounted for 55% of open interest in January 2022 and have since increased to 66.2%. In contrast, ETH’s open interest dominance decreased from 45% in 2022 to 33.8% in 2024. However, following the approval of the Ethereum Spot ETF, ETH regained some market share, with its dominance increasing to over 40% by this metric.
Conclusion
With the upcoming Dencun upgrade on the horizon, Ethereum developers are making significant strides towards a more efficient and cost-effective network. The implementation of ephemeral data blobs is anticipated to reduce L2 transaction fees, further enhancing Ethereum’s value proposition. In addition, analysts predict that Ethereum’s momentum will likely increase in the coming weeks, driven by multiple factors such as Bitcoin’s recovery, the buzz around an Ethereum Spot ETF, and the planned upgrades to lower transaction fees. As the Ethereum ecosystem continues to evolve, investors and developers are eagerly watching for further developments and opportunities.
Analyst comment
Positive news. Analyst predicts Ethereum’s momentum will increase due to factors like Bitcoin’s recovery, anticipation of an Ethereum Spot ETF, and planned upgrades to lower transaction fees. The upcoming Dencun upgrade is expected to make Ethereum more efficient and cost-effective. Investors and developers are eagerly watching for further developments.
