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Arbitrum community passes proposal for Atlas to support Ethereum’s Dencun and other upgrades

  • ArbitrumDAO proposed to upgrade its Layer 2 chains to Atlas, a version of the blockchain that supports Ethereum’s Dencun upgrade. 
  • The proposal was passed with a 51% majority of the 186.59 million votes cast by community members. 
  • ARB price rallied 8% on Tuesday, inching closer to its 2024 peak of $2.42. 

Arbitrum DAO passed a proposal to upgrade its two Layer 2 blockchains to accommodate Ethereum’s upcoming Dencun upgrade. The community passed the proposal, and the chain is now gearing up for low-cost transaction processing on the Ethereum chain. 

ARB price rallied in response to recent developments. The asset is trading at $2.1389 at the time of writing. 

Also read: Arbitrum price resumes rally with Web3 gameathon plan for March

Arbitrum passes proposal to welcome Dencun upgrade

The ArbitrumDAO announced that the project has passed a proposal to upgrade Arbitrum One and Arbitrum Nova to ArbOS 20, “Atlas.” The blockchain platform asked node operators to upgrade their node to version 2.3.1 or higher before March 14, 2024, to avoid any downtime when Ethereum upgrades to Dencun. 

The proposal includes several updates, including support for Dencun and Batch Poster improvements. The node upgrade is mandatory for Arbitrum’s operators as it will bring Layer 2 costs down for the chain’s users. Ethereum is set to activate its upgrade on March 13.

Scope Protocol, an AI data project shared research insights that reveals the Layer 2 narrative is likely to target the top three tokens in the ecosystem: Optimism (OP), Arbitrum (ARB), Stark (STRK). 

It's important to note that Arbitrum (ARB), and Optimism (OP) have token unlocks scheduled near the Dencun upgrade. It remains to be seen whether this will have a bullish or bearish impact on ARB price in the days leading up to March 13. 

ARB price is $2.1389, early on Tuesday and the asset has yielded nearly 11% weekly and 8% daily gains for holders. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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