What NOW For ETH?! Post Dencun Impact on Ethereum & L2s!!

Last week ethereum's highly anticipated Denon upgrade finally took place and While this was certainly bullish fre e Theorem and its layer to ecosystem the Charts seem to say otherwise those Expecting to eat up those eth gains were Instead served one nothing Burger meal With extra dip this has left ethereum Investors wondering where eth is headed Next and what's next for layer twos if You hold eth or any L2 projects in your Portfolio this is a video you need to Watch till the very End I'll start by saying that I am not a Financial advisor and nothing in this Video should be viewed as Financial or Investment advice it's purely Educational content that's meant to Further your crypto knowledge I'll also Point out that myself and many of the Coin Bureau team here hold eth as well As a number of layer 2 projects in our Personal portfolio don't worry though we Promise to remain objective throughout This video a quick word of caution too The dun upgrade doesn't require the user To do anything so be cautious of any Blogs emails or social media posts that Say otherwise if you're being asked to Click a link or connect your wallet for Eth to be upgraded then get yourself out Of there folks because that is a scam And finally if you're looking to trade Eth and other cryptos then you have to

Check out the coin Bureau deals page There you'll find trading fee discounts Of to 60% and sign up bonuses of up to $60,000 on some of the best exchanges It's a limited time offer exclusively For the viewers of this channel so be Sure to take advantage while you still Can so with that out of the way let's Take a look at ethereum and its layer Tools in all of this new post dencon era Before we begin if you're not really Sure what denune is all about then good News we did a thorough Deep dive into The upgrade which we'll leave a link to In the description for now though here Is a quick recap the dun upgrade is the Biggest Milestone to take place on Ethereum since the merge it introduces The necessary features to the ethereum Main net that will allow for it to Become truly scalable in the future We'll come back to what that future Might look like a little later now if You watched our Deep dive video you know That denune is an important step towards The promised land of Scalability in order to help ethereum on This Mission Denon introduces a process Called Proto Dan sharding Proto sharding Is the precursor to dank sharding itself Which is the method that ethereum will Use to break its blockchain into smaller Portions or shards which can be Processed faster and cheaper than

Ethereum can manage in its current form To prare theorum for dank sharding Denon Also introduces something called Data Blobs the these blobs are like Attachments to normal data blocks with Both being processed together by the way If you're enjoying the video so far let Us know by Smashing that like button to Give the video a boost while you're There be sure to subscribe to the Channel if you haven't already anyway Dankon went through a series of roll Outs across various test Nets before Being deployed onto the main net the First deployment was the gy test net on The 17th of January this year it had a Slight hiccup upon deployment but this Was quickly spotted and resolved within Around 4 hours and so it was able to go Ahead that same day then it was launched On the sapoia test net on the 30th of January this time with no complications Whatsoever one week later on the 7th of February denum was deployed on its final Test net hsky again this test net roll Out suffered no issues after this test Net was completed and deemed successful Uccessful it was time for the main event The dankun upgrade was finalized on the Ethereum main net on the 13th of March At exactly 1355 UTC now it's important to note that Ethereum won't see any direct changes to

The layer one at this stage instead the Main beneficiary of danoun will be its Layer 2 ecosystem specifically rollup Solutions if you want to learn more About how some of the leading L2 Projects will will benefit from Denon Then you can check out our recent video On just that the link is down below for Now though let's go over just how much The layer 2 landscape has changed now That danoun is in full swing on a Fundamental level layer 2 rollup Solutions have seen some serious Improvements with transaction fees Falling dramatically and transaction Speeds seeing a significant boost if you Think these changes are being Exaggerated think again when it comes to Transaction fees some prominent layer Twos have dropped by as much as 99% case in point one beneficiary was Starnet whose average gas fees went down From $6 all the way To4 not bad at all denon's Implementation means that L2 gas fees Have fallen off a cliff as you can see Here the current fees on the majority of Al2s have decreased significantly to the Point that they're almost negligible and As for transaction speeds these have Likewise seen a serious boost take for Example optimism as you can hopefully See the average daily TPS there has more Than doubled since tenun went live in

Anticipation of the supercharge Inefficiency dankun has drawn in a lot More investment to the layer 2 ecosystem Since the start of the year the total Value lot across l2s has increased by Almost 70% from 20.9 3 billion on the 1st of January to $ 35.3 billion at the time of shooting and Of course more users mean more Transactions to use arbitrum as an Example you'll notice that the amount of Daily transactions since denon's Deployment on the 13th of March has Spiked and it wouldn't be at all Surprising if this Spike continued as we Go further into the bull market not only That but Dano's new data hand ing means That storage is much more cost effective For layer 2 networks for reference prior To denune all data had to be permanently Stored across every node of the ethereum Mainnet which was so expensive that Around 90% of layer 2 transaction cost Went towards this overhead now however Den can provides more block space and Temporary data storage as well as blobs That take up less space can be processed Faster than the blocks the result of This is reduced storage costs and a much More efficient Network this does more Than simply make layer 2s more Attractive for users it also means that For the projects themselves their Networks are cheaper and easier to

Maintain this will in turn free up Development for other applications on Those projects meaning that the layer 2 Ecosystem could be given Room to Grow Exponentially as you can no doubt tell Then the future is looking very bright Indeed for ethereum layer 2os but what About free theum Itself well as mentioned earlier E's Price performance leaves a lot to be Desired at least at the time of shooting This video while Bitcoin has been going Bananas lately ethereum has been Struggling to keep up in fact eth has Been struggling against his BTC pair Since August 2022 now to be fair Bitcoin has been Outperforming most of the market for a While now thanks to inflows coming in From those spots ETFs and by the way if You're looking to learn more about how To trade BTC you can check out our Recent guide the link is down below more Recently ethereum's price action in Fiat Terms has been far more promising since The start of the Year eth price has Rallied by an impressive 80% more specifically to dencon eth Gained 65% between the 8th of February The day in which dankun was given the Launch date and the 13th of March when The up grade was Finalized however you'll also notice Something that given the circumstances

Seems a little out of place that rather Sudden retracement currently sitting at 133% at the time of shooting there are a Number of reasons why this could have Happened maybe it's because eth hit the Psychological level of 4K maybe it's Simply a bit of profit taking after six Consecutive weeks in the green or maybe It's because of the skepticism around Dankun itself we'll be coming back to That in just a moment it's not just the Layer one that have felt the effects Though there have been various l2s that Seem to have gone through a similar Chain of events for example optimism Rallied by over 44% after denune was Announced before retracing by almost 30% After the deployment another notable Example here was a mutable which rallied By over 60% after denum was given a date Only to retrace by more than 25% once The big day finally came around for any Ethereum Enthusiast out there this Somewhat lackluster price movement may Be a little confusing given the Bullishness around the upgrade you'd be Forgiven for thinking that ethereum Should still be in price appreciation Mode if anything though this nothing Burger shows that Danon was well and Truly priced in this makes sense Considering that the historic IAL part Of the ethereum history has been on Investor's radar for quite some time now

And remember layer tws are essentially Extensions of ethereum itself generally Speaking if eth moves the rest tend to Follow the thing is the denune upgrade Is a very bullish Milestone with dankun Serving as the stepping stone towards Sharding and scalability it has the Power to reshape the entire ethereum Landscape so then what gives well as it Happens not everyone believes dankun is So bullish While most people see dankun As a fundamental Improvement to the Structure of the overall ethereum Network there are some who believe that The direction ethereum is now headed in Could quite easily backfire and honestly They may have a point the concerns being Expressed here by the Skeptics can be Boiled down into two categories Fragmentation and security let's start With those fragmentation concerns the Issue here concerns ethereum's long-term Use and adoption as well as developer Activity and competition some investors Believe that by relying on layer 2os to Process transactions on its behalf Ethereum's dominance as the premier Settlement layer is under threat not Only that but requiring other protocols To handle the responsibility of general Computational power it doesn't exactly Send a strong message after all this is One of ethereum's primary use cases the Rapid expansion of layer 2s means that

In the not too distant future they could Compete with the ethereum base chain With things like better transaction fees Increased liquidity and a growing number Of active developers working on their Networks as for those security concerns Meanwhile they have arguably raised even More more eyebrows layer 2 Solutions Rely on a few aspects that have been Dubbed as training wheels in order to Keep fees low and protect the network Against bugs these include using a Centralized sequencer and using Non-existent proof systems that rely on Trust to operate it's also worth Pointing out that not all layer twos are Created equal each layer two has a Different design so any ethereum user Hoping to access use these to process Their data needs to be able to trust These different blockchain rule sets This approach has made some ethereum Decentralization purus doubtful needless To say these aspects don't align with The ethereum's key values of Decentralization and a permissionless Network this skepticism combined with an Overdue price correction could be a Large part of why eth and its layer tws Have seen so much pain since the upgrade Was finalized if these concerns are more Than just speculation ethereum will have Just forfeited many of the qualities That Drew people into the project in the

First place the ethereum foundation's Tim B has commented on these security Concerns saying and I quote rollups Today are definitely not as secure as Ethereum L1 for a bunch of reasons it Does fall in us as a community to Educate people around that how however He also recognized that users will begin To naturally shift towards cheaper Networks and that ethereum is only Adapting to meet this reality in his own Words and I quote I don't think it's Ethereum's role to dictate how the whole Market structure should evolve I'm glad There's just more options for Users this begs the question then how Will the landscape look for the future Of Ethereum now as mentioned earlier Dan T Introduces Proto Dan sharding which is a Part of the bigger dank sharding picture In case you're unsure dank sharding is Basically just sharding with its name Deriving from danard viist the person Who put forward his proposal of how dank Sharding should happen in the ethereum Improvement proposal or EIP anyway once The dreams of D sharding finally became Reality ethereum will finally be the Scalable Network it was always destined To be the only problem is we still don't Know when that will happen so far there Have been no set dates given and According to ethereum.org and I quote

Full D sharding is several years away Still what we do know for now is that Layer tws are well in their way to Helping ethereum scale up in the long Term this aligns with the ethereum road Map specifically The Surge which sets The goal of 100,000 transactions per Second and Beyond yond on rollups in Case you weren't already aware Ethereum's road map is made up of Several core components these are the Merge The Surge The Scourge The Verge The Purge and the Splurge I'm not sure Why they all had to rhyme but hey I Guess someone just had the urge what's Important to note here is that all of These stages will happen at once so it Isn't the case that ethereum will first Tackle the merge and then work on the Surge and so on instead developers are Working to get everything moving in Unison and as time goes on and more of These upgrades are implemented ethereum Will only become more and more powerful Each Target is set to tweak various Aspects of ethereum to optimize its Potential both the layer 1 Main net and In the broader ethereum ecosystem in the Long term this increase in ethereum's Capability will translate into increased Adoption resulting in more investment And greater price appreciation over time The same can be said for layer 2os Especially as Dan could allow them

To develop their own networks in more Detail and create more applications and Use cases while ethereum and its Layer Two ecosystems stand to benefit from one Another on a technical level the same Should apply from a price perspective Too and that's not all not only is Ethereum's upcoming d sharding upgrade Good for its own ecosystem but it also Stands to benefit the entire crypto Market as a whole that's because even in Its current form ethereum is still the Second largest cryptocurrency out there In this bull market we will see fresh Waves of brand new users hit the space If these new users are no longer being Put off by the prospect of paying Ridiculous fees to do basic transactions On ethereum they will be more more Inclined to stay to learn and to adopt Crypto on a wider scale it also makes Ethereum a lot more competitive helping To strengthen its market cap leaderboard Position sure in its current form it's Slow it's expensive and it's got some Stiff competition from other layer ones Most notably salana but with the Impending reduction in gas fees and the Supercharge to transaction efficiency Salana selling point as an ethereum k Suddenly loses a lot of traction today Ethereum undeniably has the largest Ecosystem out there with an ever Expanding number of daps protocols and

Developers working on its Network when Ethereum reaches true scalability the Adoption and potential the mayat will See will be Unprecedented once that happens etherum Could even begin to absorb some of the Market share from other evbm compatible Chains put simply once ethereum can Process and handle tasks that give these Evm compatible chains their use cases Investors and users won't necessarily Need to turn to them so much taking into Account the exponential boost that Ethereum will see after dank sharding And the increased flows in capital from Investors who would have otherwise spent Their money on Alternatives it quickly Becomes clear that once true scalability Is achieved ethereum will be Unstoppable and that's all for today's Video folks but what do you think is the Future of ethereum looking hopeful or Should we be preparing ourselves for our Next nothing Burger meal let us know in The comments we'd love to hear from you And while you're there why not smash the Like button and subscribe to the channel Be sure to Ping that notification bell Too so you don't miss our next release If this video has inspired you to stock Up on some e it's l2s or any other Crypto for that matter be sure to check Out the coin Bureau deals page there You'll find trading fee discounts of up

To 60% and sign up bonuses of up to $660,000 on some of the best exchanges You can find the link down below okay Thank you so much for watching and I'll See you all next time this is Jessica Signing [Music] Off Oh