Analyst Notes: Insights After Dencun
The Ethereum ecosystem has undergone significant changes since the Dencun upgrade (EIP-4844) went live in March 2024. This upgrade, introducing “blobs” to more efficiently handle Layer 2 (L2) data requirements, was a critical step forward in Ethereum’s scaling journey. However, the impact of Dencun has been multifaceted, triggering shifts in the network’s economic dynamics, including a notable decline in both the amount of Ether burned and the annual percentage yield (APY) for staked Ether.