To whom it may concern, this is HODL.FM, the Web3 publication that self-updates itself.
Instead of breaking balls, here is what we will break down:
- Dencun update is done and dusted, what next?
- So far so good, it has rained, poured, chucked, and drizzled for L2 coins;
- 24-hours later, Polygon, Starknet, and Optimism price have gone up;
- Arbitrum, Immutable X, and CELO have gone down;
- Impact on Ethereum’s price.
Related: Analysts Opinion: Chances of ETH ETF Approval by May Reduced
A Day After Ethereum’s Biggest Upgrade
Polygon’s MATIC and Starknet’s STRK are leading in gains on the L2 front after Ethereum’s Dencun Update activated cheaper transactions.
Dencun, which happened on Wednesday has significantly reduced the cost of data storage and made it easier to interact with Layer-2 networks.
The ease of using these networks seems to have left good tidings on Polygon, Starknet and Optimism whose tokens have gone up by 6 – 10% in the last 24 hours.
Starknet’s native cryptocurrency STRK quickly fell by 10% shortly before the update and then recorded a 6% climb 24-hours later. In a recent post on X, Starknet posted its first ‘blob’ data transaction __ costing approximately $0.04.
blob (Binary Large Objects) is a new function for storing data temporarily while you execute transactions on the blockchain. Before the update, Ethereum used the calldata function for storing data. Despite both functions being low-cost alternatives for data storage, Calldata takes up memory permanently while blobs store information temporarily for a limited time.
What’s even crazier are insights from Blobscan showing a complete script of the movie Bee which an Ethereum developer uploaded for only $5.
Starknet, Optimism, Base, and ZkSync have all implemented blobs on their networks. Not all of them have confirmed a decrease in transaction fees but Base announced gas costs on its networks went down from $0.31 to near-negligible. But why the fuse about blobs?
- Well, for one reason, they will make Ethereum developer-friendly.
- And two, they will significantly reduce gas fees for users transacting on L2s
Not all L2s Gained After the Upgrade
Arbitrum’s utility cryptocurrency ARB price has fallen by 6% in the last 24 hours, while trading volumes have dropped by 24.63%. But ARB price did not fall immediately after the upgrade went live, instead, the price climbed from $1.94 to $2.23 before witnessing a gradual fall to its current levels.
Other cryptocurrencies that plummeted are Immutable X (IMX) and Celo (CELO) which are down by 5%, and 3% respectively. CELO’s daily trading volume has also reduced by a staggering 65%, according to Coinmarketcap data.
But Why is Ethereum’s Price Falling?
The cryptocurrency community is going all bananas for the largest altcoin’s major update yet its price has taken a downturn. ETH is down by 2% over the past 1 day and has broken below the $4,000 psychological support. Trading volumes have also decreased by 17% as per CoinMarketCap.
However, an internal improvement does not always boil down to a price increase. A day after the Merge in 2022, Ethereum declined by 11% from $1635 to $1472. The upgrade is simply meant to spur rapid development activity on a network that has been notoriously congested and costly.
More Info:
- Etherscan Makes a Splash with Solscan Acquisition Amidst Solana’s Soaring Rally
- Ethereum Strikes Back: Is the 9% Surge the Beginning of a Major Rally?
- Vitalik Buterin Transfers 400 ETH Valued at $600,000 to Coinbase
The Dencun Upgrade is a Long-Term Thing
And will it live up to its expectations?
A new way of storing data that promises a cheaper and scalable solution will certainly live up to its mission. It will attract more developers, more transaction volumes _ and perhaps usher in the era of a gasless Ethereum.
As we end, was Mister Brown _the risk analyst in Paddinton right to say a bear at home increases the chances of a disaster by 4000%?
A HODLER brought home a teddy bear and this is the state of things in today’s crypto market 😢
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