With Ethereum Dencun coming right around the corner, there are some projects in the Ethereum ecosystem that might enjoy the impact, from an infrastructure standpoint to its coin or token price movement.
There are a couple of sectors that traders and investors can look into to find potential cryptocurrencies in the Ethereum ecosystem, but there are three that stand out with potential price surge high.
Which projects will benefit from the Dencun upgrade?
After the Dencun upgrade is done, it is projected that Ethereum might experience a correction in the short run.
But after that, it is predicted that Ethereum will surge high, pushing almost every one of its ecosystems higher than it is now.
To capitalize on this, let's look at three sectors in the Ethereum ecosystem that might experience benefits after the Dencun Upgrade is done.
Layer Two Blockchains
The first sector or category that will benefit significantly from the upgrade is the layer two blockchain.
Layer two blockchain based projects are projects that have a product of a layer two blockchains, where in regards to Ethereum, those blockchains are focused on helping Ethereum process most of its transactions.
With the upgrade, transaction volume of most of these blockchains will likely increase significantly, giving each of their coins more buying volume which arguably will increase its price.
The price increase will come from buyers that need the coins for transaction fees on the layer two blockchains, because with more volume comes more fees, and with more fees needed to be paid comes the purchase of the coin that specific coin that can only be used to pay those fees.
According to data from The Block, if we take a look at the transaction count of the top layer two blockchains that are helping Ethereum, it seems that Arbitrum is still in the lead, closely followed by Base and Optimism, going neck and neck.
Those three might receive the biggest impact from the Dencun Upgrade which is why it is good to keep an eye out on coins related to them.
DeFi and NFT
Other sectors that might be primarily impacted by the upgrade are the DeFi or decentralized finance sector and the NFT or non fungible token sector.
According to data from ultrasound.money most of Ethereum’s transactions are coming from the DeFi sector , closely followed by its layer two blockchains and its NFT transactions.
The data was counted by looking at burnt ETH that was taken from transaction fees, a that has been implemented since The Merge Upgrade.
More burnt ETH means more fees, more fees means more transactions, so it is clear that the DeFi and NFT sectors will be the ones impacted the most so it is good to keep an eye out on coins and tokens related to them.
Will There be a New Token or Coin from Ethereum?
Based on the information gathered from the Ethereum Foundation blog, there has been no talk of a new coin that will be used in the ecosystem.
Currently Ethereum only relies on ETH, which is being used as a utility coin and a governance coin of the whole blockchain.
While new coins and tokens might emerge after the Dencun Upgrade, those tokens or coins will not be natively created by the Ethereum Foundation.
Most of those cryptocurrencies will probably be meme coins that are capitalizing the upgrade with names such as DENCUN for pump and dump purposes only.
There might also be an emergence of new coins as a result of forks from other developers similar to what Ethereum Classic is with ETC.
But just like ETC, those cryptocurrencies are not natively built by the Ethereum Foundation, hence it might have nothing to do with Ethereum.
If you are looking for opportunities, it is better to focus on the current existing Ethereum ecosystem especially in the three sectors mentioned above.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.