Original title: "HTX Ventures: Impact Analysis One Week After Ethereum Dencun Upgrade"

Original source: HTX Ventures

2024 On March 13, 2019, the Ethereum network underwent the Dencun upgrade, which was an important milestone in its development. This upgrade brings significant cost reductions to Ethereum’s Layer 2, opening up vast possibilities. In this report, HTX Ventures analyzes the impact observed one week after the Ethereum upgrade, focusing on cost reductions, network performance improvements, and its far-reaching impact on the entire Ethereum ecosystem.

Source: Google Finance

As can be seen from the chart, the Ethereum market continued to be popular until March 13, 2024, the day of the Dencun upgrade.

Cost reduction and network efficiency improvement

EIP4844 integration

The Dencun upgrade introduces EIP4844, which aims to solve the problems of high fees and slow processing times in Ethereum by implementing data blocks. Although it is still in the process of being integrated into rollup due to technical difficulties, significant improvements have initially been shown in the gas cost of Layer 2:

- In each L2 platform, transaction fees dropped significantly:

Changes in average transaction fees: median decrease 50%-99% (dated March 14 Day, source: DuneAnalytics Dashboard)

Arbitrum: $0.39 -> $0.14

Base: $0.37 -> $0.03

Optimism: $0.32 -> $0.01

zksync: $0.19 -> $0.1

Zora: $0.2 -> $0.001

- The cost of L2 publishing data has dropped significantly:

  (Dated March 14, Source: DuneAnalytics Dashboard)

Layer 2 successfully reduced the cost of publishing data in Ethereum by 88% by turning to data blocks for data publishing, from as much as $400 per transaction to about $40.

- Mainnet Gas fees have not been reduced:Currently, Ethereum Gas prices have not been significantly affected. However, as the Blob API continues to be adopted, a reduction in Ethereum gas fees may be observed. The fee reduction can be attributed to several factors including shifting rollup demand to blobs, which frees up capacity for the Ethereum execution layer, and the separation of Ethereum gas fees from blob fees.

Source: https://ycharts.com/indicators/ethereum_average_gas_price

Future Outlook and Danksharding

Danksharding, as a key part of the Ethereum upgrade path, promises to be further enhanced Network capacity and performance. Planned improvements include increasing the number of data chunks per block and exploring advanced data availability (DA) solutions like PeerDAS. At the same time, research on MEV resistance, Verkle trees, and network optimization continues, aiming to create a more efficient and easier-to-use Ethereum ecosystem.

HTX Ventures’ Perspective

HTX Ventures as Ethereum Growth stakeholders are excited about these new directions. Dencun’s upgraded focus on fee reduction, scalability, security, and ease of use not only promotes the formation of a more inclusive ecosystem, but also provides a platform for some more innovative and complex games, social finance (SocialFi), and decentralization. Applications such as finance (DeFi) and cross-chain interoperability have paved the way.

Emerging Trends and Competitive Environment

- Due to the reduction in fees, the application chain will return to Ethereum in the form of rollup, coupled with the emergence of new L2 and L3 solutions, this will mark a major change within the Ethereum ecosystem.

- Competition among L2 solutions has intensified, emphasizing the need for founding teams to focus on users and developers, focusing on community building, infrastructure construction, and comprehensive growth strategies (including business development, sales and marketing strategies).

Ethereum side note

- The emergence of Eigenlayer is The Ethereum ecosystem brings the ability to expand outreach to numerous protocols, introducing greater flexibility and diversity, thereby ensuring that the ecosystem becomes more agile and adaptable, further enhancing the resilience and scalability of the entire ecosystem. .

- The pending approval of the ETH ETF, as well as the SEC’s decision on Ethereum’s classification, will have a significant impact on the asset’s exposure to traditional markets. HTX Ventures is closely monitoring developments related to this incident.

Conclusion

HTX Ventures continues to be committed to supporting Ethereum development journey, providing comprehensive assistance to projects at the forefront of decentralized data innovation. By driving the development of cutting-edge technology, we aim to contribute to the long-term success and expansion of the Ethereum ecosystem. We believe that with the advancement of technology and the continuous efforts of the community, Ethereum will be able to unlock more potential and bring more value and possibilities to users and developers.

References:

Offchain lab twitter space: https://x.com/OffchainLabs/status/1768631403540091131?s=20

Tom Wan: https://x.com/tomwanhh/status/1768423766151905313?s=20

HTX ETH Dencun Upgrade Twitter space: https://twitter.com/i/ spaces/1ZkKzjvanBZKv?s=20

https://ycharts.com/indicators/ethereum_average_gas_price

https://www.google.com/finance/quote/ETH-USD? sa=X&ved=2ahUKEwiZqoz1wISFAxV7EGIAHUAbAB4Q-fUHegQIBxAf&window=YTD

This article is from a submission and does not represent the views of BlockBeats.

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