Metis CEO: Dencun Marks a Significant Step Towards Cryptocurrency Adoption

The Dencun update in the Ethereum network lays the groundwork for global blockchain adoption, potentially benefiting TradFi companies in the crypto space. This was stated by Metis CEO Tom Ngo in an interview with Cointelegraph. 

“It is a big step towards mass adoption by companies for more predictable transactions in their accounts. Even for TradFi, all these slippages matter in their deals and asset management […]. Overall, it is one of the biggest updates for L2 as it reduces gas fees,” he noted. 

On March 13, blockchain developers activated the Dencun (Deneb-Cancun) hard fork on the mainnet. A key component of the update is EIP-4844, which includes the Proto-Danksharding option designed for network scaling. 

According to Ngo, the high transaction costs associated with Ethereum are one of the biggest barriers to user adoption, where even a few cents matter.

“Ordinary users are accustomed to free messaging and internet. I believe blockchain will become similar and continue to lower the entry barrier. This will allow organizations and companies to take responsibility for price fluctuations and gas costs,” said the Metis CEO.

Despite the reduction in transaction fees in L2 networks, Dencun has not resolved the issue of high costs on the mainnet. This may be one reason why second-layer solutions are attracting more users and capital, Ngo noted.

According to L2BEAT, the total value locked in L2 protocols has reached $39.6 billion, nearly four times the $10.3 billion recorded a year ago.

When asked about the mass adoption of DeFi, Ngo emphasized that user experience and compatibility are the two most pressing issues.

As reported by Grayscale experts, the launch of Dencun will help Ethereum “mature” by increasing the network’s scalability.

Glassnode noted that the update impacted the blockchain’s monetary policy through the new architecture of second-layer solutions and changes in the staking pool.