Dencun upgrade leads to decrease in average transaction fees on Ethereum L2 networks
Dencun, the latest upgrade on the Ethereum network, may have successfully addressed the issue of high fees, as recent data shows a significant decrease in average transaction fees across Ethereum layer-2 (L2) networks.
After much anticipation, the Dencun upgrade was finally launched on the Ethereum mainnet on March 13, as confirmed by Tim Beiko, Protocol Support at the Ethereum Foundation.
According to data from Dune, L2 protocols that utilize blob transactions have experienced a notable decrease in transaction fees. Platforms like Base, Optimism, and Arbitrum saw some of the largest drops in fees shortly after the launch of Dencun.
As of March 11, Optimism had an average transaction fee of $1.587, while Base recorded a fee of $1.927. However, these values have significantly dropped, with Optimism and Base both recording an average transaction cost of $0.035 at the current reporting time.
This represents a massive 97.7% decrease in fees for Optimism and a 98.8% decline for Base. Zora also saw an impressive drop, with fees plummeting 99% from $1.423 on March 11 to $0.003 at the time of writing.
Starknet also witnessed similar decreases, with the average cost for in-app swaps on Argent X, a Starknet wallet, dropping from $6.82 a few days ago to $0.04 after the launch of Dencun. It is worth noting that the Starknet Foundation has also pledged to introduce a mechanism for fee reduction alongside Dencun.
For those unfamiliar, the Dencun upgrade seamlessly combines the “Cancun” and “Deneb” updates. It aligns with Ethereum’s roadmap, known as “The Surge,” which aims to enhance the network’s scalability.
The upgrade introduces a new concept called “proto-danksharding” (EIP-4844), which aims to optimize gas fees and improve data management for layer-2 networks and rollups.
Dencun’s ultimate goal is to reduce transaction costs while increasing throughput across the Ethereum ecosystem. This objective can be achieved through a type of transaction called “shard blob transactions,” which were introduced with EIP-4844.
The Ethereum ecosystem has already seen the utilization of over 4,000 blobs. While other layer-2 protocols have quickly implemented these blob transactions, Arbitrum plans to join in with the upcoming launch of its ArbOS hypervisor. However, Blast experienced a one-hour downtime due to Dencun-related issues.
Read more: Bitcoin reaches a new all-time high as accumulation increases.
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