Ethereum’s ‘Cancun Upgrade’: A Game-Changer for Layer 2 and the ‘Comeback Battle’ for Ethereum?
Ethereum Leads the Charge in Layer 2 with the Imminent Dencun Upgrade
Ethereum is sounding the battle cry for a counter-offensive in the Layer 2 race. The latest Ethereum core developers meeting revealed plans to activate Dencun in January next year, setting the stage for a Goerli fork date early next year. This move is expected to inject new vitality into the Layer 2 race. Meanwhile, the anticipation of airdrops from Starknet and Blast has ignited community engagement.
Further reading：Massive Token Giveaway by StarkNet: 1.8 Billion $STRK Tokens to Reward Community and Transaction Rebates!
The Dencun Upgrade Set for January Activation, Boosting Layer 2 Sector
As a significant post-Shanghai upgrade on Ethereum, Dencun’s upgrade has finally made substantial progress. Ethereum core developer timbeiko.eth disclosed in the 176th ACDE meeting minutes that discussions around Dencun’s status and testnet schedule, as well as plans for the next network upgrade, were held.
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The upgrade has been tested on Devnet #12, with multiple clients including Reth and Lighthouse fixing errors. Except for the Prysm Ethereum Client, which is expected to join the Devnet #12 test in the next two weeks, almost all clients have been tested.
The meeting also noted that the development team is ready for a major Goerli shadow fork in the coming weeks. If everything goes smoothly, the Goerli fork date is set for early 2024, with the goal to activate the Dencun upgrade on the network in January next year.
Additionally, the meeting briefly discussed plans for the Prague/Electra network upgrade, with potential topics including Verkle Tries on the EL and DAS on the CL. These topics require further “in-depth study.” The last ACDE meeting of 2023 is scheduled for December 21 at 22:00 Beijing time.
Dencun: A Combination of Cancun and Deneb Upgrades
Dencun, a combination of the Cancun and Deneb upgrades, focuses on Ethereum’s execution and protocol layer upgrades, aiming to enhance network scalability, security, and usability. The long-awaited Cancun upgrade is key to Ethereum’s further expansion, opening a new phase of data storage and retrieval capabilities to benefit Layer 2 by reducing costs and increasing efficiency.
Despite the complexity of upgrades following Ethereum’s merge, leading to multiple delays, the Cancun/Deneb upgrade was activated on Devnet #12 on November 30, as revealed in the 123rd Ethereum core developers consensus (ACDC) call.
Further reading：zkSync’s Market Movements: Insights into Ethereum Layer 2 Scaling and NFT Volume Surge
Goerli Testnet Boosting Confidence in Ethereum and Layer 2 Ecosystem
Although the exact date for Dencun’s mainnet upgrade is yet to be determined, Goerli, being the closest testnet to Ethereum’s mainnet, significantly boosts confidence in both Layer 2 and the entire Ethereum ecosystem. This comes at a time when Bitcoin and Solana have been outperforming, leading to debates about Ethereum’s value in the crypto community.
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As a result, Ethereum and Layer 2 tokens have seen a general uptick. CoinGecko data shows a 7.8% increase in the total market value of the Layer 2 sector in the past 24 hours, with Ethereum trading around $2300.
Further reading：Bitcoin’s Layer 2 Evolution: 6 Years of Revolutionary Progress in Blockchain Technology
Layer 2 Race Heats Up with New Entrants and Airdrop Plans
Layer 2 is increasingly becoming a key narrative in the crypto bull market. Rootdata statistics show about 91 Layer 2 projects in the market, with 16 in the testnet stage.
In recent months, new forces have entered the Layer 2 race, with ongoing funding news. For instance, in November, the founder of Blur announced the launch of the yield-generating Layer 2 Blast, securing $20 million in funding and achieving a TVL of over $800 million in less than a month thanks to its points airdrop mechanics. Additionally, PayPal, Kraken, and others are also planning to venture into the Layer 2 race.
With the high interest in Layer 2, upcoming airdrops from multiple projects are set to bring more attention and traffic to the sector. For example, the Starknet Foundation has confirmed an airdrop snapshot, with plans to be announced upon finalization. Also, the first community L2 network, ZKFair, announced its testnet launch, with plans to airdrop 100% of its tokens to community users through a Gas fee Airdrop after mainnet launch.
Dencun Upgrade: A Turning Point for Ethereum’s Layer 2 Narrative
As Dencun’s upgrade approaches, Ethereum’s Layer 2 narrative is at a pivotal juncture. Optimizations in transaction costs and user experience will open up more application scenarios and attract more users.
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Keywords: Ethereum, Layer 2, Dencun Upgrade, Cancun Upgrade, Cryptocurrency, Blockchain Technology, Goerli Testnet, Starknet, Airdrop, TVL, Crypto Bull Market, Ethereum Ecosystem, Scalability, Security, Usability
