Ethereum’s Dencun killing L2 fees by 92%: Will Optimism, ARB pump now?

• Ethereum’s Dencun improve went dwell on the thirteenth of March.
• There has since been a notable decline in transaction charges on L2 networks.

Main layer 2 networks (L2s) have witnessed a big drop in transaction charges up to now 24 hours.

This can be a results of the profitable deployment of the Dencun improve and the activation of EIP-4844 on the Ethereum [ETH] mainnet. 

The Dencun laborious fork, which is the most important improve to the Ethereum community for the reason that Merge in September 2022, went dwell at 1:55 pm UTC on the thirteenth of March. 

As reported beforehand, the Dencun improve goals to boost Ethereum’s scalability and, notably, to lower the transaction charges of L2 answer suppliers.

The common transaction charges on L2s like Optimism [OP], Arbitrum [ARB], Base, and zkSync have dropped considerably by 92%, 23%, 94%, and 33%, respectively, for the reason that implementation of the Dencun laborious fork.

AMBCrypto sourced this information through a Dune Analytics dashboard compiled by Marcov.

Supply: Dune Analytics

ETH stays in good palms

ETH exchanged palms at $3,988 at press time, per CoinMarketCap’s information.

Its statistically constructive correlation with Bitcoin [BTC], whose worth has climbed by over 10% within the final week, induced the altcoin to witness a 5% worth uptick throughout the identical interval. 

A 2% enhance in its provide on cryptocurrency exchanges over the previous week indicated an increase in profit-taking exercise.

Nonetheless, a have a look at its efficiency on a every day chart revealed that market sentiment stays markedly bullish.

For instance, studying from ETH’s Shifting Common Convergence Divergence (MACD) indicator which tracks market traits, confirmed the MACD line (blue) considerably above the development (orange) and 0 strains. 

When these strains are positioned on this method, it signifies sturdy bullish momentum out there.

It means that the short-term shifting common is above the long-term shifting common, and there may be potential for continued worth progress. 

Learn Ethereum’s [ETH] Value Prediction 2024-25

Additional, the altcoin’s Chaikin Cash Circulate (CMF) was 0.26 as of this writing. In an uptrend and above zero, ETH’s CMF confirmed that liquidity influx into the market remained excessive. 

Supply: TradingView

Concerning the demand for the main altcoin, its Relative Energy Index (RSI) and Cash Circulate (MFI) had been 76.57 and 65.54 at press time. These values confirmed that coin accumulation exceeded sell-offs.