The Ethereum Cancun-Deneb (Dencun) Upgrade is a significant event as the cryptocurrency community anxiously awaits the next advance in Ethereum’s development. The Ethereum Dencun upgrade, launched in March 2024, represents a significant milestone in the evolution of the Ethereum network, focusing on enhancing scalability, security, and transaction efficiency. As Ethereum continues to solidify its position as a leading blockchain platform, this upgrade is expected to lower transaction costs and increase throughput, creating a ripple effect across the entire ecosystem. In particular, several altcoins are poised to benefit from these improvements, especially those operating on Layer-2 solutions or closely integrated with Ethereum.
This article explores the top altcoins that could see substantial growth following the Dencun upgrade, highlighting their unique features and potential for success in a rapidly changing market.
Advantages of the Ethereum Dencun Upgrade
- The scalability has been enhanced by optimizing gas efficiency and through EIP-1234, focusing on the execution layer.
- The consensus mechanism has been strengthened with EIP-2322, which is an upgrade to the Ethereum Proof-of-Stake (PoS) algorithm.
- Implemented EIP-1599 to simplify fee estimation and reduce transaction fees.
- The EIP-2929 heightened the cost of certain operations, making potential attacks more expensive and less attractive.
Top 6 Altcoins that Will Benefit from Ethereum Dencun Upgrade
The Dencun upgrade holds a great opportunity for Ethereum, addressing major challenges and opening new opportunities for its vibrant ecosystem. Now let’s take a closer look at some of the top altcoins that will shoot up with this Dencun upgrade.
1. Polygon (MATIC)
| Current Price | $0.98 |
| Market Capitalization | $9.4 billion |
| Circulating Supply | 9.61 billion POL |
| Maximum Supply | 10 billion POL |
| Founder | Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic |
One altcoin that could have an impact as the Ethereum Cancun-Deneb (Dencun) upgrade takes center stage is Polygon (MATIC), which is about to change its name to POL. MATIC strategically positions itself with a significant investment in the adoption of ZK technology, even though it lags behind competing Layer 2 solutions.
In addition to demonstrating a dedication to innovation, this action positions Polygon to be a major player in the developing Ethereum ecosystem. In light of the upcoming Dencun upgrade, let’s examine how MATIC, shortly to become POL, is preparing for a revolutionary voyage.
Polygon’s MATIC showed somewhat muted price activity during 2023, trailing the market’s strong rebound. There are encouraging signs of MATIC’s price recovery as 2024 progresses. It has already made two tests of the pivotal $1 level this year, suggesting that a significant breakout may be imminent. The price of MATIC has doubled since October 2023, and this rising trend seems stable, indicating that it will probably continue for the rest of the year.
2. Optimism (OP)
| Current Price | $3.65 |
| Market Capitalization | $3.5 billion |
| Circulating Supply | 957 million OP |
| Maximum Supply | 4.29 billion OP |
| Founder | Jinglan Wang, Kevin Ho, and Karl Floersch |
Optimism is a powerful force in Ethereum’s scaling environment, ranking as the Second-Largest Layer 2 (L2) platform by Total Value Locked (TVL). By using an optimistic roll-up technique, Optimism effectively handles transactions outside the Ethereum mainchain, guaranteeing speedy and economical validations.
This creative technique gives consumers almost instantaneous transaction capabilities while addressing long-standing issues like network congestion and expensive petrol prices. Beyond its speed, Optimism supports a wide range of decentralized applications (dApps) and protocols, supporting a variety of industries from Non-fungible token (NFT) marketplaces like Opensea to decentralized finance (DeFi) with platforms like Synthetix and Uniswap.
3. Mantle Network (MNT)
| Current Price | $0.78 |
| Market Capitalization | $2.5 billion |
| Circulating Supply | 3.2 billion MNT |
| Maximum Supply | 6.2 billion MNT |
| Founder | Pascal Leblanc |
Among Layer 2 projects that are likely to be impacted by the Ethereum Dencun upgrade, Mantle Network stands out as a strong candidate. Mantle Network is positioned as a cutting-edge solution that seeks to tackle important issues in the Ethereum ecosystem. Mantle uses state-of-the-art technology with an emphasis on usability, security, and scalability optimization.
The architecture of the network is made to improve transaction throughput and lessen congestion, which helps users have a more seamless experience. With more than $1.5 billion of ETH staked as mETH (Mantle Staked Eth), Mantle is one of the fastest-growing L2s and the third-largest Liquid Staking Derivative (LSD), behind Lido and RocketPool.
4. Arbitrum (ARB)
| Current Price | $1.78 |
| Market Capitalization | $2.2 billion |
| Circulating Supply | 1.275 billion ARB |
| Maximum Supply | NA |
| Founder | Steven Goldfeder |
Among Layer 2 solutions for Ethereum, Arbitrum is the industry leader with excellent metrics and a great reputation as the leading platform for the creation of new decentralized applications (dApps). Using an optimistic roll-up method with the Optimistic Virtual Machine (OVM), Arbitrum leads in both transaction volume and Total Value Locked(TVL).
The long-standing scalability problems of the Ethereum network are resolved by this off-chain execution of Ethereum code, which guarantees quick transaction rates and low gas costs. Additionally, Arbitrum is home to a wide range of dApps, ranging from play-to-earn games to decentralized finance (DeFi) and Non-Fungible Token(NFT) marketplaces. Because of its remarkable scalability and dedication to decentralization and security, Arbitrum is a key participant in the Layer 2 market.
5. Metis (METIS)
| Current Price | $92 |
| Market Capitalization | $482 million |
| Circulating Supply | 5.25 million METIS |
| Maximum Supply | NA |
| Founder | Kevin Liu |
One notable cryptocurrency impacted by the upcoming Ethereum Dencun upgrade is Metis, a major participant in the Layer 2 market. The $400 million Metic ecosystem fund is proof that Metis has attracted significant funding due to its strategic growth positioning.
With this substantial support, Metis is positioned as a strong competitor in the developing Ethereum ecosystem. Notably, Metis’s dedication to expanding the potential of Layer 2 solutions is further demonstrated by the March deployment of a decentralized sequencer alpha mainnet. Metis’s creative scalability and usability strategies will probably add to the larger story of how Layer 2 projects adjust to prosper in the changing Ethereum environment as it goes through the Dencun upgrade.
Conclusion
The Ethereum Dencun upgrade marks a transformative phase for the Ethereum network, enhancing its scalability and efficiency while reducing transaction costs. This evolution not only strengthens Ethereum’s foundational capabilities but also creates a fertile environment for altcoins to thrive. Altcoins like Polygon, Optimism, Mantle Network, Arbitrum, and Metis are particularly well-positioned to capitalize on these advancements, as they offer innovative solutions that complement Ethereum’s infrastructure. As the blockchain landscape continues to evolve, these altcoins could experience significant growth, driven by increased adoption and a burgeoning ecosystem of decentralized applications.