Optimism gears up for Ethereum Dencun upgrade with these steps

• Optimism implements a hardfork in preparation for Dencun.
• EIP-4844 will bring reduced transaction fees on the network.

The Ethereum [ETH] Dencun upgrade is approaching, and Layer 2 solutions such as Optimism [OP] have expressed readiness for this upcoming development. The upgrade is set to impact the fees on Optimism, but what other changes can be expected?

Optimism set for Dencun activation

Optimism recently shared a post on X (formerly Twitter), announcing the arrival of 4844. Although the post may seem cryptic initially, further examination revealed that it alluded to the network’s adoption of the latest Ethereum Improvement Proposal (EIP).

This upgrade is part of the preparations for the upcoming Ethereum Dencun upgrade.

Optimism has successfully implemented the Ecotone hardfork on its Goerli development networks. It has enabled the submission of batches through EIP-4844 blobs.

This suggests that once Dencun is activated on the Ethereum mainnet, OP Stack chains will be able to leverage blob space, leading to reductions in transaction fees.

The state of Optimism L2 and POS network

Examining Total Value Locked (TVL) data on L2 Beats showed that Optimism maintained dominance over other Layer 2 solutions. As of this writing, it held over 25% of the space, amounting to over $5.2 billion. 

In addition, a review of OP mainnet statistics showed that the completed transactions were over 195 million. However, the number of new transactions has experienced a decline after reaching its peak in two months.

The chart showed a rise in transactions to over 500,000 on 24th January, followed by a slight decrease to around 460,000 at the time of this writing.

Source: Blockscout

Furthermore, an analysis of new accounts also showed a recent downturn. On 24th January, the number of new accounts, similar to transactions, rose to over 13,000.

As of this writing, this figure has decreased to around 9,000. The anticipated reduction that the Dencun activation might bring could attract more users to the network. This could increase the number of users and transactions.

OP close to breaking immediate resistance

A daily timeframe analysis of Optimism showed a sustained recovery, with the chart showing its third consecutive day of upward movement.

At the time of this writing, it was trading at around $3, showing a more than 4% increase in value.

 How much are 1,10,100 OPs worth today

Furthermore, the continuous rise has positioned it close to breaking the immediate resistance. This resistance level is around $3.1, with its short-moving average (yellow line) marking this level. 

OP could be further impacted positively by reduced fees and increased transactions. 

Source: Trading View