L2 Networks Fees Dropped 10 Times After Dencun Update
Ethereum developers rolled out the Dencun update to the main network, which significantly cut fees on Layer 2 networks.
The Dencun update is Ethereum's most significant update since The Merge, when the network moved to proof-of-stake. Dencun should directly improve the user experience by significantly reducing L2 network fees through the introduction of EIP-4844.
Dencun went live, we've had blobs land in blocks on mainnet .oO 🎉
— timbeiko.eth ☀️ (@TimBeiko) March 13, 2024
Several analytics platforms, such as Dune and l2fees.info, have noted a dramatic reduction in fees on L2 networks. Base, Optimism and Arbitrum, showed the most significant cuts shortly after the launch of Dencun.
Dune data shows that back on March 11, the average transaction fee on Optimism was $1.587 and on Base was $1.927. However, as of now, the average transaction fee on Optimism and Base is $0.035. Zora has also seen an impressive 99% drop, from $1.423 to $0.003 at the time of writing. And according to l2fees.info, StarkNet's usage fee has dropped to $0.05 and Polygon zkEVM's has dropped to $0.39. Arbitrum One's usage fee is currently $0.40.
Dencun's ultimate goal is to reduce transaction costs while increasing the capacity of the Ethereum ecosystem. This goal can be achieved through the blob transactions introduced in EIP-4844. Right now, there are about 4,000 blobs in the Ethereum main network. Meanwhile, layer 2 networks have long implemented blockchain transactions.
Following the Dencun update, L2 tokens such as Arbitrum, Optimism, Lido, and others attracted interest from the cryptocurrency market, causing volatility in the L2 solutions sector. Ethereum also reacted with a slight drop, as market participants expect a strong reaction from ETH and L2 tokens when the update is fully implemented on the networks.
