Ethereum

Arbitrum

Starknet

Base

Foundation

Dencun, the latest upgrade to grace the Ethereum network, might have fulfilled its vision to address high fees, as data confirms a significant drop in average transaction fees across Ethereum layer-2 (L2) networks. 
Following an extended period of anticipation, the Dencun upgrade finally <a href="https://crypto.news/dencun-update-live-ethereum/">went live</a> on the Ethereum mainnet on March 13, as confirmed by Ethereum Foundation Protocol Support Tim Beiko. 
According to data provided by Dune, L2 protocols utilizing blob transactions have experienced a significant decrease in transaction fees, with platforms such as Base, Optimism, and Arbitrum seeing some of the largest drops shortly after Dencun went live. 
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 <img loading="lazy" decoding="async" width="923" height="510" src="https://crypto.news/app/uploads/2024/03/Screenshot-2024-03-14-132212.png" alt="Average transaction fees on Ethereum L2 networks drop following Dencun upgrade - 28" class="wp-image-14258204">
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 Layer-2 average transaction fees – March 14 | Source: Dune
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</figure> 
As of March 11, Optimism had an average transaction fee of $1.587, while Base recorded a figure of $1.927, data from Dune confirms. However, these values have dropped substantially, with Optimism and Base both recording an average transaction cost of $0.035 at the reporting time.&nbsp; 
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This change represents a massive 97.7% drop in Optimism’s fees and a 98.8% decline in the value witnessed with Base. Zora also recorded an impressive slump, as fees collapsed 99% from $1.423 on March 11 to $0.003 at the time of writing, per data from Dune.&nbsp; 
Starknet saw similar drops, with the average cost for in-app swaps on Argent X, a Starknet wallet, <a href="https://twitter.com/argentHQ/status/1767917028013224370?t=ZmqHgQ_aI1A0n63ahqvMuQ&amp;s=19" target="_blank" rel="noopener">slumping</a> from $6.82 a few days ago to $0.04 shortly after Dencun went live. It bears mentioning that the <a href="https://crypto.news/starknet-foundation-game-committee/">Starknet Foundation</a> also <a href="https://thedefiant.io/starknet-to-roll-out-suite-of-fee-saving-measures-alongside-dencun" target="_blank" rel="noopener">promised</a> to introduce a mechanism for fee reduction in parallel with Dencun. 
For the uninitiated, the <a href="https://crypto.news/what-is-ethereum-dencun-upgrade/">Dencun upgrade</a> seamlessly merges the “Cancun” and “Deneb” updates. It aligns with Ethereum’s roadmap known as “The Surge,” with a primary focus on bolstering the network’s scalability. 
The upgrade introduces a novel concept called “proto-danksharding” (EIP-4844), aiming to fine-tune gas fees and enhance data management for layer-2 networks and rollups.&nbsp; 
Dencun’s ultimate goal is to reduce transaction costs while boosting throughput across the Ethereum ecosystem. Notably, this objective could be achieved through a type of transaction called “shard blob transactions,” introduced with EIP-4844.&nbsp; 
The Ethereum ecosystem has <a href="https://dune.com/queries/3519378" target="_blank" rel="noopener">witnessed</a> the utilization of over 4,000 blobs so far. While other layer-2 protocols have swiftly implemented these blob transactions, Arbitrum plans to join the party with the upcoming launch of its ArbOS hypervisor. Meanwhile, Blast saw a 1-hour <a href="https://crypto.news/blast-halts-ethereum-dencun-error/">downtime</a> due to issues related to Dencun. 
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Average transaction fees on Ethereum L2 networks drop following Dencun upgrade

crypto.news

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