Ethereum Dencun Upgrade Live: Which Crypto Sectors Stand to Benefit Most?

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After multiple delays, the highly anticipated Ethereum Dencun upgrade was officially activated at block height 8626176 on March 13, 2025, at 21:55 Beijing time. This pivotal moment marks a significant leap forward in Ethereum’s journey toward a more secure, scalable, and efficient blockchain network.

The upgrade brings with it a suite of technical enhancements designed to address long-standing challenges—especially high transaction fees and network congestion. With Ethereum continuing to serve as the backbone for decentralized applications (dApps), DeFi, and NFTs, Dencun’s impact extends far beyond core protocol improvements. It reshapes the landscape for several key crypto sectors.

But what exactly does Dencun entail? And which blockchain赛道 (translated: "tracks" or "sectors") are poised for the biggest gains?

Key Features of the Dencun Upgrade

Dencun is a portmanteau of Cancun and Deneb. While Cancun focuses on upgrades to Ethereum’s execution layer (EL), Deneb enhances the consensus layer (CL). Before going live on the mainnet, Dencun successfully passed through multiple testnets, including Devnet, Goerli, Sepolia, and Holesky.

The upgrade implements nine EIPs (Ethereum Improvement Proposals):

These improvements collectively boost network efficiency, reduce operational costs, and enhance user experience—particularly for validators and Layer 2 solutions.

👉 Discover how next-gen blockchain upgrades are shaping the future of decentralized finance.

EIP-4844: The Game-Changer Known as Proto-Danksharding

Among the nine EIPs, EIP-4844, also known as Proto-Danksharding, has captured the most attention. Named after Ethereum researchers Dankrad Feist and Proto Lambda, this proposal introduces a new transaction type called "blobs" (binary large objects).

Blobs create temporary off-chain data storage that drastically reduces data load on the main Ethereum chain. This innovation directly addresses one of Ethereum’s biggest pain points: high Layer 2 transaction fees due to expensive calldata costs.

According to Polygon zkEVM co-founder Jordi Baylina, EIP-4844 increases Ethereum’s total data availability capacity by up to 3x. When combined with data compression techniques, potential cost reductions range from 10x to 50x, depending on usage patterns.

This makes EIP-4844 a critical stepping stone toward full danksharding, Ethereum’s long-term scaling solution.

Major Layer 2 networks—including Starknet, Base, Polygon zkEVM, Linea, and Arbitrum—have already committed to integrating EIP-4844, signaling strong ecosystem alignment.

Top Sectors Set to Benefit from Dencun

With Dencun now live, several crypto sectors are positioned for accelerated growth. Let’s explore the most promising ones.

Layer 2 Scaling Solutions

Layer 2 (L2) networks are the primary beneficiaries of the Dencun upgrade. By slashing transaction costs and boosting throughput via blob-carrying transactions, L2s become far more accessible to retail users and enterprises alike.

Before Dencun, average fees on major L2s were still relatively high:

Post-upgrade projections from welovetheblobs suggest dramatic improvements. For example, a Uniswap swap on Base could drop from $0.58 to just $0.01—a reduction of over 98%.

This cost efficiency is already reflected in market metrics. According to L2 BEAT, Ethereum’s Layer 2 total value locked (TVL) reached $38.98 billion by March 13, up 11.08% in seven days.

Projects leading the charge include:

👉 See how low-cost transactions are unlocking mass adoption in Web3 ecosystems.

LSD and Restaking Protocols

Since Ethereum’s transition to Proof-of-Stake (PoS), staking has evolved into a sophisticated ecosystem. Liquid Staking Derivatives (LSDs) and restaking protocols now allow users to earn yield across multiple layers of security.

However, early staking mechanisms had limitations—such as rigid withdrawal rules and suboptimal validator performance. Dencun addresses these issues through:

These changes enhance both user experience and system resilience—key drivers for LSD platforms like:

Most notably, many of these projects have not yet launched their native tokens, creating significant anticipation among investors and developers.

Data Availability (DA) and Decentralized Storage

While blobs provide temporary data storage, they are periodically pruned—meaning historical data isn’t permanently accessible on-chain. This creates a growing need for robust data availability (DA) layers and decentralized storage solutions.

Enter DA-focused protocols that ensure long-term data integrity and accessibility for rollups relying on blob-based scaling.

Popular DA projects include:

Meanwhile, established decentralized storage networks like:

are also expected to see renewed demand as dApps require permanent archiving of blob data.

With Dencun reducing short-term storage costs while increasing reliance on external DA layers, this sector is entering a phase of rapid innovation and adoption.

Rollup-as-a-Service (RaaS)

As Layer 2 adoption grows, so does the complexity of deploying custom rollups. Enter Rollup-as-a-Service (RaaS)—a developer-friendly model that simplifies rollup creation using modular toolkits.

Think of RaaS as the SaaS of blockchain infrastructure, offering:

Leading RaaS platforms include:

These services enable teams to launch app-specific rollups without deep expertise in cryptography or consensus design. As more projects seek sovereignty and scalability post-Dencun, RaaS becomes an essential bridge between vision and execution.

Frequently Asked Questions (FAQ)

What is the Dencun upgrade?

Dencun is a major Ethereum network upgrade combining Cancun (execution layer) and Deneb (consensus layer) improvements. It introduces EIP-4844 and other proposals to enhance scalability, security, and efficiency—especially for Layer 2 networks.

How does EIP-4844 reduce transaction fees?

EIP-4844 introduces "blob-carrying transactions" that store large amounts of temporary data off the main chain. This reduces calldata usage—a primary cost driver—leading to potential fee reductions of up to 90–95% on Layer 2 networks.

Which Layer 2 projects support EIP-4844?

Major adopters include Arbitrum, Base, Polygon zkEVM, Starknet, Linea, zkSync, and Scroll. All have confirmed integration plans or have already enabled blob support post-upgrade.

What are the benefits of restaking protocols?

Restaking allows users to reuse staked ETH or LSD tokens across multiple protocols (like EigenLayer), enhancing security while earning additional yield. It amplifies capital efficiency within the Ethereum ecosystem.

Why is data availability important after Dencun?

Although blobs reduce costs, they only retain data temporarily (~18 days). For long-term access, rollups must rely on external DA layers or storage networks—driving demand for solutions like Celestia and Arweave.

Will Dencun affect ETH price?

While not a direct monetary policy change, Dencun improves Ethereum’s utility and user experience. Lower fees and better performance may increase adoption, potentially boosting demand for ETH as more activity occurs on-chain.

Final Thoughts

The Dencun upgrade represents a transformative milestone in Ethereum’s evolution. By enabling cheaper, faster, and more scalable transactions through innovations like EIP-4844, it unlocks new possibilities across Layer 2 scaling, restaking, data availability, and developer tooling.

Core keywords naturally integrated throughout:
Ethereum Dencun upgrade, EIP-4844, Layer 2 scaling, data availability (DA), restaking, LSD protocols, blob transactions, Rollup-as-a-Service (RaaS)

As these sectors mature, we’re likely witnessing the foundation of Ethereum’s next growth cycle—one built on modularity, efficiency, and mass accessibility.

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