Top 5 Altcoins That Might Explode After the Ethereum Dencun Upgrade [2024]

Introduction

As the crypto community eagerly anticipates the next leap forward in Ethereum’s evolution, the Ethereum Cancun-Deneb (Dencun) Upgrade emerges as a pivotal moment. Building on the success of previous milestones like the Shanghai upgrade, Dencun brings a fresh wave of improvements, targeting scalability, security, and usability. In this blog post, we unravel the intricacies of this anticipated hard fork, exploring key features and enhancements that promise to reshape the Ethereum landscape. Join us on this journey into the heart of Ethereum’s ongoing transformation and discover how the Dencun Upgrade is set to redefine the future of this dynamic blockchain network.

Benefits of the Ethereum Dencun Upgrade:

• Enhanced Scalability: Optimizing gas efficiency and scalability through EIP-1234, focusing on the execution layer.
• Robust Security Measures: Strengthening consensus mechanisms with EIP-2322, an upgrade to the Ethereum Proof-of-Stake (PoS) algorithm.
• Improved User Experience: Introducing EIP-1559 for a new fee structure, simplifying fee estimation, and reducing transaction fees.
• Heightened Network Security: EIP-2929 increases the cost of certain operations, making potential attacks more expensive and less attractive.
• Efficient Elliptic Curve Verification: EIP-2537 proposes a new Ethereum-specific opcode, enhancing privacy and scalability.

This upgrade holds great potential for Ethereum, addressing critical challenges and unlocking new opportunities for its vibrant ecosystem. Stay tuned for further updates and announcements as the Ethereum community prepares for this exciting milestone in the network’s evolution.

Now, let’s look at some of the altcoins that will be most affected by this upgrade.

Polygon (MATIC)

As the Ethereum Cancun-Deneb (Dencun) Upgrade takes center stage, one altcoin poised for potential impact is Polygon (MATIC), on the brink of a rebrand as POL. Despite trailing behind other Layer 2 solutions, MATIC positions itself strategically with a substantial investment in zk technology implementation. This move not only signals a commitment to innovation but also sets the stage for Polygon to play a significant role in the evolving Ethereum ecosystem. Let’s delve into how MATIC, soon to be POL, is gearing up for a transformative journey amid the anticipated Dencun Upgrade.

MATIC/USD | Source: TradingView

• Throughout 2023, Polygon’s MATIC exhibited a relatively subdued price action, lagging behind the broader market’s robust recovery.
• As 2024 unfolds, there are positive indications of MATIC’s price rebound. It has already tested the crucial $1 mark twice in the year-to-date timeframe, hinting at the potential for a substantial breakout.
• Starting from October 2023, MATIC’s price has experienced a twofold increase, and this upward trend appears robust, suggesting the likelihood of continuation throughout the year.
• Currently hovering slightly above the Fibonacci R1 level at $0.96, MATIC’s price must surpass and sustain above $1, as discussed earlier, to propel further.
• Looking to the upside, MATIC’s price targets include $1.2, aligning with the R3 level.
• On the downside, the $0.7 level serves as a crucial support region for the altcoin, as it has demonstrated once before in 2024.

Read More: Top 10 Cryptos in 2024

Optimism (OP)

Optimism, holding the rank of the second-largest Layer 2 (L2) platform by Total Value Locked (TVL), stands as a formidable force in Ethereum’s scaling landscape. Optimism efficiently processes transactions off the Ethereum mainchain, leveraging an optimistic rollup approach, ensuring quick and cost-effective validations. This innovative solution addresses longstanding concerns such as network congestion and high gas fees, providing users with near-instant transaction capabilities.

Beyond its speed, Optimism fosters a diverse ecosystem of decentralized applications (dApps) and protocols, accommodating various sectors from decentralized finance (DeFi) with platforms like Synthetix and Uniswap to Non-Fungible Token (NFT) marketplaces like Opensea. The recent announcement of its fourth airdrop underscores Optimism’s commitment to community engagement, decentralization, and security. Governed by the Optimism Collective, the platform’s open-source codebase ensures transparency, fostering trust among users and developers. As Ethereum gears up for the Dencun Upgrade, Optimism stands poised to play a pivotal role in shaping the network’s scalable and decentralized future.

OP/USD | Source: TradingView

• Optimism’s native token OP has been one of the weaker performers in 2024 – and has not been able to make any gains so far this year. It had made some strong gains back towards the end of 2023 – but that has flattened out since the beginning of 2024.
• However, despite the slightly bearish technical structure – OP price is still trading well above both its 50-day and 200-day EMAs and is trading just shy of the Fibonacci R1 level.
• If OP price is able to breach the R1 level, which roughly coincides with the $4 mark – then we could see a rally all the way up to near $5 levels.
• On the downside, the Fibonacci P level at $3.2 would serve as a region of support for the altcoin going forward.

Additional Read: Top Layer 2 Crypto Projects

Mantle Network (MNT)

Mantle Network emerges as a compelling contender among Layer 2 projects poised to be influenced by the Ethereum Dencun Upgrade. Positioned as an innovative solution, Mantle Network aims to address key challenges within the Ethereum ecosystem. Employing cutting-edge technology, Mantle focuses on optimizing scalability, security, and usability. The network’s architecture is designed to enhance transaction throughput and reduce congestion, contributing to a smoother user experience.

One of the fastest-growing L2s, Mantle has over $1.5 billion of ETH staked as mETH (Mantle Staked ETH), making mETH the third-largest Liquid Staking Derivative (LSD) after Lido and RocketPool. With its commitment to decentralization and robust security measures, Mantle Network is set to play a pivotal role in Ethereum’s evolving landscape. As the Dencun Upgrade unfolds, Mantle’s progress will likely be closely watched, offering potential insights into how the upgrade impacts Layer 2 projects and their contributions to Ethereum’s broader ecosystem.

MNT/USD | Source: TradingView

• Mantle Network’s native crypto MNT price is showing strong signs of bullishness and is well-positioned to rally is the broader sentiments improve.
• MNT price is trading well above both the 50-day and the 200-day EMAs and is also trading just above the stiff resistance at R1 of the Fibonacci pivot point.
• A convincing breakout and sustenance above this level could potentially push MNT price to near $1 levels, close to the R3 level demarcated by the Fibonacci pivots, which is around $0.95. This would result in a near 33% gain from current levels.
• On the downside, MNT price would find support at the P pivot point, placed at $0.67.

Arbitrum (ARB)

Arbitrum, reigning supreme with top-notch metrics and a stellar reputation as the premier platform for new decentralized application (dApp) launches, stands tall among Layer 2 solutions for Ethereum. Leading in both Total Value Locked (TVL) and transaction volume, Arbitrum employs an optimistic rollup mechanism, featuring the Optimistic Virtual Machine (OVM). This off-chain execution of Ethereum code ensures rapid transaction speeds and minimal gas fees, addressing the long-standing scalability issues of the Ethereum network.

Arbitrum also hosts a diverse ecosystem of dApps, covering sectors from decentralized finance (DeFi) and Non-Fungible Token (NFT) marketplaces to play-to-earn games. The platform’s commitment to decentralization and security, coupled with its impressive scalability, marks Arbitrum as a pivotal player in the Layer 2 landscape. As Ethereum gears up for the Dencun Upgrade, Arbitrum’s continued innovation promises to redefine the blockchain landscape and elevate user experiences to new heights.

ARB/USD | Source: TradingView

• Similar to OP price action above – Arbitrum’s ARB price is also trading under a somewhat weaker trajectory. While ARB price has gained about 14%, thanks to a strong beginning to 2024 – it has been falling since.
• ARB price is trading just below its short-term 50-day EMA and moderately above its long-term 200-day EMA. This depicts a slightly bearish view for the altcoin going forward.
• ARB price is also trading below the Fibonacci pivot’s P-level – and overall the $1.8 to $2 region would be a region of strong resistance for the altcoin.
• On the downside, ARB price can find support between $1.3 to $1.5 – which coincide with the S1 and the S2 of the Fibonacci pivot points.

Know More: Top Ethereum ERC-20 Tokens

Metis (METIS)

Metis, a prominent player in the Layer 2 landscape, stands as a noteworthy altcoin influenced by the impending Ethereum Dencun Upgrade. With a strategic positioning for growth, Metis has garnered substantial support, evidenced by the $400 million Metis Ecosystem Fund. This significant backing positions Metis as a robust contender in the evolving Ethereum ecosystem. Notably, the launch of a decentralized sequencer alpha mainnet in March further underscores Metis’s commitment to advancing the capabilities of Layer 2 solutions. As Ethereum undergoes the Dencun Upgrade, Metis’s innovative approach to scalability and usability will likely contribute to the broader narrative of how Layer 2 projects adapt to and thrive within the evolving Ethereum landscape. The tailwinds of support and ongoing developments make Metis a compelling altcoin to monitor closely in the wake of the Ethereum Dencun Upgrade.

METIS/USD | Source: TradingView

• METIS price saw a strong end of 2023 – gaining over 410% between December 18, 2023 to January 16, 2024 – and since then has been consolidating after seeing a minor correction. This is a good indication that there are some strong buying hands in the market for this altcoin.
• In technical terms, however, METIS price is barely above its 50-day EMA and well above its 200-day EMA, which indicates some short-term correction may follow in the near future.
• A breakout above the crucial $100 level, which is also a psychological level for METIS price can bring in fresh buying pressure and push METIS price to create new highs above $120.
• On the downside, the Fibonacci pivot’s S1 level would serve as a region of support for the altcoin, which is placed at $71.

Conclusion

As the Ethereum Cancun-Deneb (Dencun) Upgrade approaches, these selected altcoins stand as potential beneficiaries, leveraging the enhancements in scalability, security, and usability. From Polygon’s innovative zk technology to Optimism and Arbitrum’s prowess in scaling Ethereum, and Mantle Network’s impressive staking dominance, to the strategic growth initiatives of Metis, these altcoins showcase diverse strengths. The forthcoming upgrade signals a transformative period for Ethereum and its associated projects, and investors and enthusiasts alike should keep a watchful eye on these altcoins as they navigate the evolving landscape of decentralized finance.