Ethereum‘s latest network upgrade, known as the Dencun update, has delivered on its promise to drastically cut down transaction fees for Layer 2 solutions. By introducing a fresh transaction model known as blobs, the upgrade replaces the old “calldata” method. This innovation has led to a sharp decrease in average transaction costs across several major Layer 2 networks, making operations more economical for users.
Dramatic Cost Reduction Observed Post-Update
Evidence from multiple Layer 2 networks, including those within the Optimism ecosystem and others like zkSync and Starknet, indicates a remarkable decline in transaction fees. Reports detail how the Base network’s fees plummeted from $0.5 to roughly $0.0012, while OP Mainnet also experienced a notable fee reduction. These reductions echo the update’s broad positive impact.
Starknet, another Layer 2 network, has seen swap fees at Argent wallet provider dive from $6.8 to merely $0.04, thanks to the Dencun update. However, not all networks have integrated the update yet; for instance, Arbitrum One is preparing to introduce its ArbOS update, which is expected to support blobs and may subsequently result in decreased transaction fees.
Potential Fee Increases on the Horizon
While the fee reductions have undoubtedly benefited network users, there is an anticipation that fees could climb once more as competition for blob space intensifies. With already over 3,000 blobs in use, a slight increase in transaction costs may occur as more networks adopt the new model.
Nonetheless, the lowered transaction fees post-Dencun update have substantially enhanced the accessibility and scalability of Layer 2 networks. The full extent of the update’s impact remains to be seen as the ecosystem grows and adjusts to these changes.