The Dencun upgrade has significantly slashed fees on the Ethereum network, improving access to decentralized applications. However, this hasn't been reflected in Ethereum's value.
Impact of Dencun Upgrade on Ethereum
On March 13, 2024, a significant upgrade of Ethereum took place, merging Cancun and Deneb improvements. The primary goal was to enhance network scalability and reduce transaction costs. As a result, the swap fee decreased from $86 to $0.39, and selling an NFT dropped from $145 to $0.65.
Paradox of Value and Technical Progress
Despite technical advancements, the value of ETH has dropped by 53%, highlighting the complexity of the cryptocurrency market. Dominik Harz, co-founder of Build on Bitcoin, noted the impact on DeFi's total value locked.
Future Development of Ethereum
Despite current challenges, Ethereum continues to progress. The next significant upgrade, Pectra, has already been deployed on the Sepolia test network. It promises to double the available data space for Layer 2, further reducing costs and increasing computational capacity.
Ethereum's technical advancements continue, but the blockchain faces challenges: regaining investor trust, attracting developers, and maintaining its position amid growing competition.
