Crypto Analysts Recommend Keeping an Eye on These Altcoins as Ethereum’s Dencun Update Draws Near
Ethereum’s highly anticipated ‘Dencun’ upgrade is set to have a monumental impact on the ETH ecosystem. Renowned crypto analyst, Miles Deutscher, predicts that several altcoins will reap substantial benefits from this transformative development.
The upcoming Dencun update, scheduled for March 13, is part of Ethereum’s strategic roadmap known as ‘The Surge’. This series of updates aims to enhance scalability, security, and usability within the network. By implementing various Ethereum Improvement Proposals (EIPs), the Dencun update aims to significantly reduce fees on Ethereum Layer-2s, thus making these chains more commercially viable for decentralized applications (dApps) and users.
Miles Deutscher has identified six altcoins that are poised to capitalize on the upcoming Dencun upgrade. Here are his top picks:
1. Optimism: With a strong transaction volume and its recent announcement of a fourth airdrop, Optimism, the second-largest Layer-2 by TVL, is expected to thrive.
2. MATIC: Despite lagging behind other Layer-2 solutions, MATIC has made significant investments in ZK technology.
3. Metis: Backed by robust support, including the $400 million Metis Ecosystem Fund, Metis is well-positioned for growth. It plans to launch a decentralized sequencer alpha mainnet in March.
4. Arbitrum: Known for its exceptional metrics and reputation as a preferred chain for new dApp launches, Arbitrum leads in Total Value Locked (TVL) and transaction volume.
5. Mantle: As one of the fastest-growing Layer-2s, Mantle boasts over $1.5 billion of ETH staked as mETH (Mantle Staked ETH). It currently ranks as the third-largest Liquid Staking Derivative (LSD).
6. COTI Network: Introducing ‘Garbled Circuits’ to enhance privacy, COTI is a privacy-centric Ethereum Layer-2 that recently announced its V2 release.
Additionally, Deutscher suggests keeping an eye on projects like Manta Network, Starknet, zkSync, and Linea, as they are also expected to be impacted by the Dencun upgrade.
In terms of price analysis, Ethereum is currently trading at $2,992, showing a 2.07% increase in the last 24 hours. With a circulating supply of 120.16 million, this marks the highest price since May 2022, rebounding from a low of $1,000 in June 2022.
While Ethereum’s recent price increase is encouraging, experts anticipate a correction or a decrease in price once it reaches $3,200. Based on Fibonacci retracement levels, they expect the price to fall within the range of $2,100 and $1,800.