Summary
TLDR: Ethereum’s Dencun upgrade is happening soon, focusing on lower gas fees for layer two networks. This will benefit networks like Polygon, Arbitrum, and Optimism. The upgrade will require more hardware for node runners but shouldn’t impact decentralization. Analysts predict this upgrade could help ETH outperform BTC in 2024.
Key Points
1. Ethereum’s Dencun upgrade is set to introduce EIP 4844, which will lower gas fees on layer two networks like Polygon, Arbitrum, and Optimism.
2. The upgrade will increase hardware requirements for Ethereum node runners, but these marginal increases shouldn’t negatively impact Ethereum’s decentralization.
3. Analysts predict that the Dencun upgrade could be a catalyst for Ethereum to outperform Bitcoin in 2024, leading to increased network activity and potential market share recapture within the crypto ecosystem.