After Bitcoin’s surge, Ethereum geared to hit the top league with dencun update. Should you invest?

livemint.com:

Bitcoin is not the only cryptocurrency that has undergone a radical price jump that entailed hitting an unprecedented level of $73,000 on account of massive inflow of institutional money.

The second largest crypto token ETH (run on Ethereum blockchain) has also exhibited a 40 percent spike in the past one month alone. 

The key reason for this jump is believed to be the much-awaited Dencun upgrade of blockchain. Ethereum developers were eagerly awaiting the Dencum upgrade of blockchain, the biggest code change in more than a year.

Ether was trading at $3,980 at 16.00 IST, 1.66 percent lower than a day before.

Dencun is a portmanteau for the project name Deneb + Cancun. This consists of two upgrades happening together on ethereum's consensus and execution layers. Dencum upgrade, a hard fork in blockchain terminology, was finalised at 7.40 pm IST.

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In the run up to this upgrade, ether has rallied up to 43 percent in the past one month, as the image below shows.

One of the key benefits investors can expect with Dencun upgrade is the reduction of transaction costs on layer 2 networks.

The average transaction costs on layer solutions such as Optimism and Base fall following the Dencun upgrade, reported CoinDesk.

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The average cost of transactions on Optimism has declined to around 4 cents from the recent average of around $1.4, CoinDesk wrote, quoting blockchain analyst Marcov’s Dune-based tracker. The average fee on Coinbase’s layer 2 solution Base fell to 3 cents from roughly $1.50, while Arbitrum declined to 40 cents, the report further said.

So, besides the price spike