{"id":441808,"date":"2023-09-23T02:55:16","date_gmt":"2023-09-23T02:55:16","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=441808"},"modified":"2023-09-23T02:55:16","modified_gmt":"2023-09-23T02:55:16","slug":"ethereums-upcoming-upgrade-faces-potential-delays-post-shanghai-network-activity-down","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ethereums-upcoming-upgrade-faces-potential-delays-post-shanghai-network-activity-down","title":{"rendered":"Ethereum’s Upcoming Upgrade Faces Potential Delays; Post-Shanghai Network Activity Down"},"content":{"rendered":"

JPMorgan analysts expressed their concerns regarding Ethereum’s underwhelming network activity<\/a> since the introduction of the Shanghai upgrade back in April. While the upgrade did notably shift the system from proof-of-work to proof-of-stake, resulting in an incredible reduction of over 99% in energy consumption, the anticipated rise in network activities fell short. Additionally, there was a surge in staking, with ether staked experiencing a 50% increase after the upgrade. However, this rise hasn’t been mirrored in terms of daily transactions, active addresses, or the total value locked (TVL) in DeFi<\/a> protocols.<\/p>\n

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the increase in network activity has been rather disappointing<\/p>\n<\/blockquote>\n

The slowdown in Ethereum’s activity might be attributed to several setbacks experienced over the past year, including the collapse of Terra and FTX, uncertainty in U.S. regulatory measures, waning interest in crypto<\/a> among institutional investors, and a dip in venture capital funding. Despite the positive implications of the Shanghai upgrade, which allowed for the withdrawal of staked ether, these adverse factors seem to have overshadowed its benefits.<\/p>\n

Furthermore, Layer 2 networks on Ethereum<\/a> have shown inconsistent results. Optimism, for instance, has seen a spike in activities, while Arbitrum’s traction has declined. Notably, both networks witnessed a drop in TVL following the Shanghai upgrade. Analysts also spotlighted potential centralization issues with Ethereum, particularly highlighting the liquid staking protocol Lido’s significant market dominance.<\/p>\n

Dencun: Ethereum’s Next Big Step?<\/h2>\n

Despite this less than stellar news, Ethereum enthusiasts<\/a> and industry experts are now keenly anticipating the EIP-4844 upgrade, colloquially known as Dencun. This upcoming upgrade, officially named Deneb-Cancun, aims to tackle Ethereum’s scalability challenges by implementing the EIP-4844 proposal.<\/p>\n

Tim Beiko, a representative from the Ethereum Foundation<\/a>, during a recent consensus-layer meeting, voiced concerns regarding a potential delay in rolling out Dencun on the mainnet. Given that the upgrade hasn’t been launched on public testnets like Goerli, Sepolia, and Holesky, there are apprehensions about its implementation before 2024, especially if it doesn’t debut on a public testnet by the upcoming Devconnect conference in November 2023. With the upgrade still in the “devnet phase” and the year fast concluding, the developers are gearing up for a test on “Devnet 9” before moving on to the public testnet stage.<\/p>\n

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🚀 #Ethereum<\/a> 's Next Upgrade: Dencun, Potential Delay to 2024? 🌐
Could this #pump<\/a> $ETH<\/a> in the coming months?🚀<\/p>\n

A thread🧵
🧵1\/9 pic.twitter.com\/Pec7vBHp29<\/a><\/p>\n

— Maxø1st🙇🏼‍♂️ (@Maxo1st) September 22, 2023<\/a><\/p><\/blockquote>\n