While Ethereum developers inch closer to shipping Dencun, some experts are unconvinced the upgrade will deliver on its promises.
Days before Dencun is scheduled to deploy on Ethereum’s mainnet, two industry veterans offered differing opinions regarding the impact of this much-anticipated upgrade amid skyrocketing Ether (ETH) prices.
The hype and crypto market euphoria pushed ETH to another two-year high, as the crypto crossed $4,000 for the first time since late 2021, at the peak of the previous bull cycle.
Core DAO, Wormhole experts on Ethereum’s upgrade
Ethereum developers have said that Dencun will implement expanded data availability for layer-2 solutions like Arbitrum and Optimism, allowing for improved transaction capacity at lower gas fees.
Core DAO initial contributor Rich Rines said in a statement received by crypto.news that the focus on Ethereum L2 may harbor unexpected issues around liquidity and on-chain fragmentation.
While this should enable higher TPS on the network as a whole, questions remain whether this is a long-term fix. Over-reliance on Layer 2s could lead to fractured ecosystems and liquidity, as activity trends away from the base layer. Additionally, Layer 2s may involve more trust assumptions and can have sub-optimal influence on the base layer if transactions and fees are increasingly taken off the base chain.
Rich Rines, Core DAO initial contributor
Rines noted that observers must closely monitor Dencun’s progress after deployment, which is expected by March 13 barring unforeseen delays. The Core DAO contributor also said questions may arise about whether the upgrade’s objective was the correct goal in the first place.
On the other hand, Wormhole Foundation co-founder and CCO Robin Burkey views Dencun optimistically and expects the upgrade to herald a massive increase in cross-chain asset transfers.
The Dencun upgrade is undeniably a positive development for the crypto space. This upgrade will really enhance Ethereum’s scalability and security, which bodes well for defi and overall interoperability. This will result in cheaper and easier asset movement and more affordable transactions on Ethereum.
Robin Burkey, Wormhole Foundation co-founder and CCO,
Burkey opined that the Dencun upgrade will bolster defi usage, accessibility, and dynamism as cheaper fees should incentivize greater on-chain participation in crypto’s largest decentralized ecosystem.