Although the crypto market is famous for its volatility, the rankings are clear. The first two positions are reserved for Bitcoin and Ethereum. That has been the case for years, and that trend will likely continue.
It’s no wonder that experts place Ethereum as one of the most promising cryptocurrencies of 2024 and beyond. Many call it the digital silver, considering that BTC is the market’s gold. Another reason why it could be wise to buy Ethereum now is the Dencun upgrade. Let’s see what this new development is all about.
Exploring the Ethereum Dencun upgrade
The planned update is a major hard fork, which means that the network will undergo significant changes. The upgrade’s full name is Cancun-Deneb—Dencun for short.
There’s no exact date when the upgrade will go live. It will happen when the chain gets to the slot 8626176. Experts estimate that this will occur on March 13th, 2024, and that should be an accurate prediction.
Dencun upgrade will include different EIPs or Ethereum Improvement Proposals. Here’s an overview of the updates and what to expect from them:
- EIP-4844. Many see this improvement as crucial. The update will introduce Proto-Danksharding and blob transactions. A blob is a 125kB data field that should secure faster information processing while decreasing costs. A complete Danksharding update should feature a new data layer, which should reduce fees while improving scalability in Layer 2 rollups.
- EIP-1153. Transient storage is the focus of this update, and there’ll be a crucial difference compared to current EVM opcodes. The idea is to discard opcodes after completing the transfer. It’s like when a computer device clears its RAM after it’s not necessary anymore.
- EIP-4788. The upgrade involves a beacon block root becoming a part of the EVM. It should improve the staking pool and cross-chain bridge architecture, improving their trustworthiness and functionality.
- EIP–5656. It implements the MCOPY instruction in the EVM, which serves for memory copying. The idea is to improve efficiency in creating data structures. Although the upgrade is minor compared to some other EIPs, it can significantly enhance network performance.
- EIP-6780. The upgrade focuses on the SELFDESTRUCT opcode. Its idea is to make it less likely for hackers to steal ether from smart contracts. The update achieves that by restricting when it’s possible to use this opcode. The important thing to say is that transactions before this proposal won’t be affected by this update.
If you have some ETH, you can also consider Ethereum staking, which has the potential to secure significant yields.
Goals of the Ethereum Dencun upgrade
Many claim that the Dencum upgrade is a major turning point for the entire Ethereum network. And there’s no doubt that the update will change how everything works on this blockchain. Here are the main reasons why developers plan on implementing these adjustments.
Enhanced scalability
Scalability has been a major problem for the Ethereum network, and it’s about time to do something about it. The Proto-Danksharding upgrade is how the developers plan to combat this issue. Blob transactions with new data fields should promote data processing at a faster rate.
That should lead to a higher transaction throughput. The ultimate result will be an improved user experience overall, which should contribute to Ethereum’s popularity.
Layer 2 gas fee reductions
The specialized data layer expected from the Proto-Danksharding update will improve transaction processing. That also means that network resources will have a smaller burden, and that should lead to lower transaction costs. Some estimations are that gas fee reductions could lead them to be as low as a fraction of a cent.
Reduced vulnerability to potential attacks or network disruptions
Ethereum Dencun upgrade will create a more robust network ecosystem. That robustness will make it more difficult for hackers to perform illegal activities on the network. It will also reduce the likelihood of network disruptions. That should make Ethereum even safer for users and developers.
Ethereum’s price movement after the Dencun upgrade
Ethereum’s current market cap is $349 billion, which places it comfortably in the second spot of the crypto rankings. You can purchase a single ETH at a price of $2,900, but what about its cost after the Dencun upgrade?
Different experts have different views on Ethereum price prediction. However, if the crypto market remains on a positive path, most agree that ETH is destined for success. The most optimistic forecasts place Ethereum at up to $4,532.55 before the year ends. However, the majority believes ETH will remain around the current value throughout 2024. Those who are more cautious think that the upgrade could actually affect short-term worth, and ETH could drop to $1,800.
Forecasts are more encouraging for 2025. At least a small increase and a value of $3,080 is expected for ETH that year. Those more optimistic place the token at $4,921, while the most positive forecasts believe ETH could go as high as $6,536.
As for long-term forecasts, it will depend on the crypto market overall. If there’s a wider adoption of digital currencies, ETH could reach anywhere from $6,506 to $17,043 in 2028. If things don’t go as expected and the crypto market encounters issues, Ethereum should still keep its value at no lower than $3,400.
By the end of the decade, ETH forecasts vary from $7,400 to $40,530. It’s clear that these are merely assumptions since we are talking about many years ahead, and many factors could affect Ethereum’s value over time.
Conclusion
Ethereum has been the most popular and valuable altcoin for years. However, developers know that they can keep this position only by improving the network. The Dencun upgrade is a much-expected major development. It promises many improvements, primarily focused on efficiency and scalability but also security and affordability.
If everything goes well, Dencun could be the next big chapter in Ethereum’s history. The network could reaffirm its reputation among individual and business users, as well as developers.
Featured image credit: David McBee / Pexels
