The crypto market anticipates significant events this year that could spur growth, with Ethereum‘s Dencun upgrade potentially unlocking major gains for ETH and certain altcoins. Despite the Merge not delivering expected excitement in prices, Dencun could be a major catalyst.
Ethereum Layer2 solutions, connected to the mainnet, are becoming the choice for investors seeking speed, low fees, and scalability. Interest in these solutions spiked last year, with Layer2 networks outperforming the mainnet in transaction speeds, showing a substantial increase in December 2023.
Layer2 rollups’ scaling factor surged up to sevenfold some days in December, with transaction speeds reaching 91 TPS compared to Ethereum’s 13.45 TPS. This indicates that Layer2 solutions are being used more actively than Ethereum’s mainnet.
Supporting these Layer2 solutions could lead to price increases for related tokens. Particularly, tokens like OP and ARB Coin are expected to see good times ahead. Arbitrum, having the largest total locked value, has been pricing this in for a while.
The Dencun upgrade, also known as EIP-4844, is highly anticipated for Ethereum in 2024. It aims to drastically reduce costs in rollups. The upgrade will decrease transaction fees significantly, potentially increasing volumes and interest in Layer2 solutions, which should be reflected in their token prices.