Proto-Danksharding may become the biggest narrative of the year, which projects will benefit?

Will Proto-Danksharding be the biggest narrative of the year? Which projects will gain from it?

It is estimated that 90% of the transaction costs on Rollup are spent on paying fees for publishing data on Ethereum. Danksharding aims to reduce the cost of data used by Rollup, and its first phase upgrade Proto-Danksharding (EIP-4844) will be launched later this year. Crypto KOL Thor Hartvigsen analyzes the upgrade content of EIP-4844 and potential investment opportunities.

Danksharding is Ethereum’s future sharding design, which will be implemented in several phases. It introduces various features, including blobs (Rollup transaction bundling), merged fee market, and proposer/builder separation. Proto-Danksharding (EIP-4844) is the first part of this major upgrade, which will enter Ethereum through the Cancun hard fork later this year.

As sharding or the so-called “data availability sampling” will not be introduced in Proto-Danksharding, only Rollup fees will be reduced, not the fees of the Ethereum mainnet itself. Therefore, the beneficiaries are Rollup and their native tokens. The cost of using Rollup is lower, and profit margins increase.

Narratives often form before the Ethereum hard fork, and EIP-4844 is no exception. Therefore, the performance of ARB and OP may be better than the market. Other projects worth watching? Tokens of the native ARB and OP ecosystems, as well as tokens that are about to be launched like Mantle, Linea, zkSync, and more.

Reference: https://twitter.com/ThorHartvigsen/status/1673404345478705153

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