Ethereum Dencun Upgrade: Layer 2 DeFi Tokens Rally Begins, Mantle (MNT) Surges 20%

Layer-2 DeFi platforms on the Ethereum blockchain network have shown strong network activity over the last week leading to a strong price rally in DeFi tokens. This comes as Ethereum gears for the Dencun upgrade which will bring major improvements in terms of network security, scalability, and functionality.

DeFi Tokens Rally Begins

After the Unsiwap announcement last week, Defi tokens have stoled the limelight from AI tokens, especially the ones associated with the Ethereum Layer-2 scalability platform. some of the top DeFi tokens witnessing strong price surges and trading activity include $UNI, $COMP, $COTI, $SUSHI, and $AAVE.

Joining the bandwagon recently is Mantle (MNT) registering 20% gains in the last 24 hours. As of press time, Mantle is trading at $0.95 with a market cap of over $3 billion, and 24-hour trading volumes surging by 200% to over $175 million.

One of the major things about the Mantle Network is that it aims for compatibility with the Ethereum Virtual Machine (EVM). Its modular architecture divides transaction execution, data availability, and transaction finality into separate modules, allowing for individual upgrades and integration of the latest advancements.

With Mantle (MNT) witnessing substantial expansion, it has amassed over $1.5 billion worth of Ethereum staked as mETH (Mantle Staked ETH). Consequently, it plans to provide enticing airdrops for mETH stakers.

How Ethereum Dencun Upgrade Benefits L2s?

The Dencun upgrade, a pivotal component of Ethereum’s ambitious initiative “The Surge,” brings forth a series of Ethereum Improvement Proposals (EIPs) aimed at enhancing the network’s efficiency and functionality. Of notable significance is EIP-4844, which introduces Proto-Danksharding, a groundbreaking advancement for Ethereum’s scalability.

A key highlight of EIP-4844 is the introduction of “blob-carrying transactions,” a novel transaction type that notably reduces transaction costs for users on Layer-2 (L2) networks, consequently boosting Ethereum’s transaction throughput.

This substantial reduction in fees on Ethereum Layer-2s is anticipated to mark a significant milestone in gas fee reduction, rendering L2 chains an appealing option for both decentralized application (dApp) developers and users. As a result, the Layer-2s are positioned to surpass alternative Layer-1 solutions in terms of attractiveness and adoption.

The ramifications of the Dencun upgrade resonate across the entire Ethereum ecosystem, impacting decentralized finance (DeFi) applications, gaming platforms, and various other sectors.