Ethereum

Arbitrum

DeFi

Revolution

<p>The transaction fee landscape on Ethereum is set to undergo a historic upheaval. The highly anticipated EIP-4844 upgrade heralds a wind of change for the blockchain network. By significantly reducing the costs of second-layer transactions, this update could trigger a new era of mass adoption for decentralized exchanges and the DeFi ecosystem as a whole.&nbsp;&nbsp;</p>
<h2 id="h-l2-gas-fees-on-ethereum-yesterday-s-harsh-reality">L2 Gas Fees on Ethereum, Yesterday’s Harsh Reality</h2>
<p>Until now, the <a href="https://www.cointribune.com/en/high-fees-explosion-on-ethereum-a-bad-omen-before-dencun/" target="_blank" rel="noopener noreferrer nofollow">high transaction fees</a> on Ethereum’s base layer have been a significant deterrent to widespread adoption of decentralized exchanges (DEXs) and decentralized finance applications. Leading projects like Arbitrum, Optimism, and even the “economical” solution Base have long been criticized for their exorbitant fees.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>According to data from <a href="https://twitter.com/wublockchain/status/1767231213918659069?s=46&amp;t=zj7ICl0Lw9vdTKh741lFIQ" target="_blank" rel="noopener noreferrer nofollow">IntoTheBlock</a>, a simple swap on Arbitrum cost an average of 2.02 dollars in gas fees. On Optimism, the amount was 1.42 dollars. Even on Base, known to be more affordable, an investor had to shell out 0.58 dollars per transaction. These numbers have turned away many small investors, put off by these astronomical costs.</p>
<h2 id="h-the-dex-renaissance-with-eip-4844">The DEX Renaissance with EIP-4844</h2>
<p>But the hour of disruption has struck with Ethereum’s EIP-4844. This highly anticipated upgrade will lighten the bill considerably, with fee reductions of up to 80% on some popular L2 networks:</p>
<ul>
 <li>Arbitrum: from 2.02$ to only 0.40$ per transaction</li>
 <li>Optimism: from 1.42$ to 0.28$&nbsp;&nbsp;</li>
 <li>Base: from 0.58$ to a floor of 0.01$</li>
</ul>
<p>A true renaissance is on the horizon for DEXs, which are finally becoming truly affordable for the general public. This fee disruption will enable them to reach an unprecedented level of Ethereum adoption.&nbsp;&nbsp;</p>
<p>Projects are already preparing, sharpening their strategies to ride this wave. Some are considering incentives to attract new users, while others are developing new value-added services like staking, lending, or new trading features. A fierce battle looms to capture the capital of individual investors, eager for these affordable L2 transactions.</p>
<p>EIP-4844 will undoubtedly mark a decisive turning point for Ethereum and its decentralized finance ecosystem. By significantly lowering the barrier of fees, this danksharding opens the way to mass adoption of <a href="https://www.cointribune.com/en/only-5-exchanges-control-98-of-the-crypto-market-in-euro/" target="_blank" rel="noopener noreferrer nofollow">decentralized exchanges</a>. For small investors deterred by recurrent charges, DEXs finally become accessible. A true democratization of layer 2 transactions is on the horizon, which could boost volumes and activity to levels never before reached.</p>

Ethereum Layer 2: The Gas Fee Revolution with EIP-4844!

Table of Contents

Cointribune EN

Other articles published on Mar 12, 2024

Pepe Price Prediction: Pepe Plunges 10% As Meme Coins Dump, But This New Solana Sensation Surged ...

Injective, AVAX prices surge as Memeinator token listing nears

Spot Ethereum ETFs To Be Launched In Hong Kong Before The US

Trump: BTC “Additional Currency” Accepts Bitcoin

Popular rapper Drake shares insight on Bitcoin’s future, highlights Michael Saylor’s views

Solana (SOL) Trading Volume Doubles Ripple (XRP) As Altcoin Movement Increases

Join our free newsletter for daily crypto updates!