In a long-awaited development for Ethereum enthusiasts, the Dencun upgrade has finally made its debut on the Ethereum mainnet, ushering in a notable decrease in average transaction fees across various layer-2 (L2) networks.
Confirmed by Tim Beiko from the Ethereum Foundation Protocol Support, the Dencun upgrade, which seamlessly integrates the features of both the “Cancun” and “Deneb” updates, has been eagerly anticipated for its potential to address the persistently high fees plaguing the Ethereum network.
Data provided by Dune reveals a substantial reduction in transaction fees across L2 protocols leveraging blob transactions. Platforms such as Base, Optimism, and Arbitrum have particularly seen significant drops in transaction costs shortly after the Dencun upgrade went live.
Prior to the upgrade, Optimism and Base recorded average transaction fees of $1.587 and $1.927, respectively, as of March 11. However, following the implementation of Dencun, these fees have plummeted to $0.035 each, marking a staggering 97.7% and 98.8% decline for Optimism and Base, respectively.
Similarly, Zora has experienced a remarkable 99% decrease in transaction fees, dropping from $1.423 to $0.003. Starknet has also witnessed notable fee reductions, with in-app swaps on Argent X, a Starknet wallet, seeing costs slashed from $6.82 to $0.04 shortly after Dencun’s activation.
Notably, the Starknet Foundation has pledged to introduce a fee reduction mechanism in tandem with the Dencun upgrade to further enhance user experience.
At the heart of the Dencun upgrade lies the concept of “proto-danksharding” (EIP-4844), designed to optimize gas fees and streamline data management for layer-2 networks and rollups. This upgrade aligns with Ethereum’s scalability roadmap, known as “The Surge,” and aims to significantly improve throughput while reducing transaction costs.
Dencun introduces a groundbreaking transaction type called “shard blob transactions,” as outlined in EIP-4844, which has already seen widespread adoption within the Ethereum ecosystem, with over 4,000 blobs utilized thus far.
While most layer-2 protocols have swiftly integrated these blob transactions, Arbitrum is set to join the fray with the upcoming launch of its ArbOS hypervisor. However, Blast encountered a one-hour downtime due to issues related to the Dencun upgrade.
Overall, the implementation of the Dencun upgrade represents a significant milestone for Ethereum, bringing about tangible improvements in transaction fees and scalability across layer-2 networks, and signaling a promising future for the Ethereum ecosystem.