Ethereum

Arbitrum

Impact

Base

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum’s Dencun upgrade has significantly reduced transaction fees on Layer 2 chains.</li>
 <li>Despite the initial success, there is anticipation that fees might increase in the future due to competition for blob space.</li>
</ul>
<p>The recent Dencun upgrade on <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> seems to have successfully reduced transaction costs on Layer 2 chains.</p>
<h2 id="impact-of-dencun-upgrade">Impact of Dencun Upgrade</h2>
<p>Major Layer 2 chains that adopted EIP-4844 witnessed a substantial decrease in average transaction fees. The upgrade introduced a new transaction type, blobs, for Layer 2s, providing a direct route to fee reduction.</p>
<p>Instead of the conventional “calldata” method, these blobs serve as a new point of location for the chains when posting information on Ethereum. Data from various Layer 2s indicates a significant drop in transaction fees.</p>
<h2 id="examples-of-fee-reduction">Examples of Fee Reduction</h2>
<p>For instance, the median gas fees on Base dropped from approximately $0.5 on March 13 (just before Dencun was launched) to about $0.0012, according to the most recent on-chain data. Similar reductions were observed on Starknet, with fees for a swap standing at $0.04 compared to over $6.8 a few days before Dencun.</p>
<p>However, Arbitrum One, the most popular Layer 2, has not yet integrated with Dencun improvements. It plans to introduce blob support to Arbitrum rollup chains with its forthcoming ArbOS upgrade.</p>
<p>So far, more than 3000 blobs have been uploaded. It is speculated that Layer 2 chains using blobs may face higher fees in the future due to increased competition for blob space, potentially leading to higher gas prices.</p>

Significant Fee Reduction in Ethereum Layer 2 Transactions Post-Dencun

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