Ethereum L2s median transaction fees decline as much as 99% post-Dencun upgrade
Ethereum Foundation’s Tim Beiko called Dencun one of the most complex forks since the Merge, with most EIPs implemented in a fork.
Ethereum layer 2 (L2) protocols have seen a significant drop in transaction fees, with some protocols recording a reduction of up to 99% after the Dencun upgrade on Ethereum on March 13. Dencun is a scalability-focused upgrade on the Ethereum mainnet, with many touting it as one of the most significant upgrades since the Merge.
Median transaction fee of L2s. Source: DuneStarknet, a prominent Ethereum-based L2, has seen a 99% reduction in gas fees after the upgrade. The protocol shared a screenshot of their latest gas fee, which has come down to $0.04 compared to over $6 prior to the Dencun upgrade.
Starknet gas fee. Source: Starknet on X .Several other L2 platforms, including Optimism, Base, Zora OP mainnet, and others, registered a dramatic decline in gas fees after the Dencun upgrade. The average transaction fees for Optimism dropped to $0.05, $0.064 on Base, $0.5 on Arbitrum and $0.16 on zkSync Era. Within 24 hours of the upgrade, Optimism and chains based on Optimism’s tech stack, like Base, have seen the most critical gas fee reductions.
Optimism L2s transaction cost decline. Source: Optimism on X .One of the most widely used L2 platforms, Arbitrum One, plans to launch its ArbOS upgrade to introduce blob support to Arbitrum rollup chains later today.
The Dencun hard fork introduced nine different Ethereum Improvement Proposals (EIPs), out of which EIP-484 introduced data blobs and provided Layer 2s with a new transaction datatype called blobs. The latest data blobs bypass the traditional “call data” process to publish information on the Ethereum mainnet, providing faster transactions at lower fees. The Dencun upgrade was two years in the making.
Ethereum Foundation’s Tim Beiko called Dencun “the most complex fork we’ve shipped since the Merge,” and ties with Byzantium for the “most total EIPs in a fork.”
Scalability and low gas fees were the top goals of the latest Ethereum upgrade. Early indications suggest that the hard fork has helped several L2s cut transaction costs. Experts believe Dencun might be a temporary solution, but it won’t be enough to help scale the Ethereum network .
As the number of rollups using blobs rises and the battle for blob space is predicted to heat up, the low cost on L2 chains using blobs may see increased fees in the future, resulting in higher transaction costs.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump and Wall Street: How long will the love affair last?
Share link:In this post: Wall Street loved Trump’s win at first—stocks jumped, Bitcoin soared, and borrowing costs hit rock bottom, but some sectors started cracking fast. Tax cuts and deregulation made financial and energy stocks shoot up, but tariffs and plans to deport workers freaked out economists and markets. Tariffs mean higher prices for Americans, and even Walmart’s warning it’ll have to raise prices if Trump pushes through with his trade war.
OpenAI could face a bigger problem than Elon Musk’s lawsuit against it
Share link:In this post: OpenAI’s much bigger threat comes from government regulation since it has more power than Elon Musk. If the government chooses to investigate the shift of OpenAI from a non-profit to a Public Benefit Corporation, there will be severe repercussions. The AI company’s dual model has sparked controversies
Spot Bitcoin ETFs see record $2.42B inflows as Chinese ETFs suffer historic $2B outflows
Share link:In this post: Spot Bitcoin Exchange Traded Funds saw almost $2.5 billion in investments in a single week. However, the Chinese ETFs have seen a series of outflows, amounting to $2 billion worth of withdrawals. The Bitcoin rally helped elevate the spot ETF market, especially with Bitcoin close to reaching $100000.
The clash of Bitcoin and benchmark stock indexes
Share link:In this post: The S&P 500 is up 25% this year, with financial and cyclical stocks leading, boosted by optimism around a Trump administration and steady economic growth. Bitcoin has surged 40% this month, nearing $100,000, driven by aggressive trading, retail investor enthusiasm, and headlines hinting at government support. MicroStrategy’s stock hit a $100 billion market cap, tripling its Bitcoin holdings’ value, but its wild 32% drop from intraday highs shows cracks in the frenzy.