Over the past week, Layer-2 DeFi platforms on the Ethereum blockchain have exhibited robust network activity, resulting in a significant price surge in DeFi tokens. This uptrend occurs as Ethereum prepares for the Dencun upgrade, which promises substantial enhancements in network security, scalability, and functionality.
DeFi Tokens Start to Surge
Following last week’s announcement from Uniswap, DeFi tokens have overshadowed AI tokens, particularly those linked to the Ethereum Layer-2 scalability solution. Notable DeFi tokens experiencing significant price increases and trading volumes include $UNI, $COMP, $COTI, $SUSHI, and $AAVE.
Recently joining the surge is Mantle (MNT), which has seen a 20% increase in value over the last 24 hours. Currently, Mantle is priced at $0.95, with a market capitalization exceeding $3 billion, and its 24-hour trading volumes have soared by 200% to more than $175 million.
A key feature of the Mantle Network is its aim for compatibility with the Ethereum Virtual Machine (EVM). Its modular design separates transaction execution, data availability, and transaction finality into distinct components, facilitating individual enhancements and the incorporation of the latest technological developments.
With significant growth, Mantle (MNT) has accumulated over $1.5 billion in Ethereum staked as mETH (Mantle Staked ETH). In response, it is planning to offer attractive airdrops to mETH stakers.
How Does the Ethereum Dencun Update Advantage Layer 2 Networks?
The Dencun update, a crucial part of Ethereum’s extensive project “The Surge,” introduces a range of Ethereum Improvement Proposals (EIPs) designed to boost the network’s performance and capabilities. Among these, EIP-4844 stands out by ushering in Proto-Danksharding, a significant leap forward in Ethereum’s scalability efforts.
EIP-4844’s key innovation is the introduction of “blob-carrying transactions.” This new type of transaction significantly lowers costs for users on Layer-2 (L2) networks, thereby increasing Ethereum’s transaction capacity.
The expected dramatic decrease in fees for Ethereum Layer-2s is set to be a landmark achievement in reducing gas fees, making L2 networks a more attractive choice for decentralized application (dApp) developers and users alike. Consequently, Layer-2s are poised to become more desirable and widely adopted than competing Layer-1 platforms.
The Dencun update’s effects are felt throughout the entire Ethereum ecosystem, influencing decentralized finance (DeFi) applications, gaming platforms, and a host of other domains.