Cryptocurrencies have been making headlines with their soaring prices, and it’s not just Bitcoin that has experienced a surge. The second largest crypto token, Ethereum (run on the Ethereum blockchain), has also seen a 40% increase in the past month alone. Experts attribute this jump to the highly anticipated Dencun upgrade of the blockchain, the biggest code change in over a year.

As of 16:00 IST, Ether was trading at $3,980, a 1.66% decrease from the previous day. But what exactly is the Dencun upgrade? It is a combination of two upgrades, Deneb and Cancun, happening simultaneously on Ethereum’s consensus and execution layers. This hard fork, which was finalized at 7:40 pm IST, is expected to bring down transaction costs on layer 2 networks.

This reduction in transaction costs has already been seen on layer solutions like Optimism and Base, with the average cost dropping from $1.4 to just 4 cents. This is great news for investors, as it means potentially higher profits. In fact, on CoinSwitch, ETH trading volume has increased by 340% this quarter compared to last year, and layer 2 tokens like Arbitrum, Optimism, and MATIC (Polygon) are also in high demand.

In addition to the price surge of Ether, layer 2 tokens are also likely to experience a jump in their prices after the upgrade. This is supported by the fact that the market is optimistic about the Dencun upgrade, with CoinSwitch reporting a 340% increase in ETH trading volume this quarter and a 400% increase in volume for Arbitrum, 411% for Optimism, and 200% for MATIC (Polygon).

So, if you’re interested in the world of cryptocurrencies, now may be a good time to invest. But be sure to stay informed and make wise decisions. And for even more benefits and insightful news, don’t forget to log in to your account.