Transaction fees on several ethereum Layer 2 networks, such as Base, StarkNet, and Optimism, have seen significant reductions following the implementation of the Dencun update.
Yesterday the Dencun update was launched after Months of anticipation within the crypto community. The update, described As the “most complex fork” since ethereum moved to a proof-of-stake network, it introduced a new transaction type called blobs for Layer 2 networks.
Dencun introduced ethereum 'blobs', which are temporary data storage mechanisms that significantly reduce transaction fees and improve the performance of Layer 2 networks by enabling a more efficient and cost-effective way to publish accumulated data. This data is removed from the blockchain after approximately 18 days to maintain network efficiency.
Rate reduction
Jesse Pollack, Base contributor, reported a reduction in network transaction fees from $0.31 to $0.0005.
Meanwhile, OKLink eth/dencun-upgrade”>data puts Base's average fee at around $0.18 compared to $0.88 previously. The data also shows that Layer 2 network optimism rates dropped sharply to a few cents from previous levels of more than $1.
StarkNet also witnessed a 99% rate reduction. Argent, a leading network wallet provider, reported an average fee of $0.04 for swaps, which contrasts sharply with the more than $6.8 seen before Dencun.
SoSo Value blockchain analytics platform corroborated these bearish trends, stating that there were “ Dramatic drops in transfer (one-way) and swap (two-way) fees for Decision, Optimismand Base from March 14 at 7:00 am (HKT).”
Interestingly, ethereum developers began store the entire script of Bee Movie, a comedy animation starring Jerry Seinfeld, on the ethereum blockchain at minimal cost.
Improved adoption
With transaction fees declining on Layer 2 networks, stakeholders anticipate increased adoption of the ethereum network.
Brian Armstrong, CEO of Coinbase, echoed this optimism, emphasizing the potential for expanded cryptocurrency use cases with reduced transaction fees and confirmation times on Layer 2 blockchains.
Similarly, Eli Ben-Sasson, a board member at the Starknet Foundation, said cryptoslate that the Dencun upgrade would be seen as “the moment when decentralized applications (dApps) that were not viable in terms of payment became practical.” “Today will go down in history as the date of birth of a culture of dApps for everything.”
