Transaction fees on various Ethereum layer 2 networks such as Base, StarkNet, and Optimism have decreased significantly since the implementation of the Dencun upgrade.
The Dencun upgrade was released yesterday. There have been months of anticipation within the cryptocurrency community. The upgrade, described as the most “complex fork” since Ethereum transitioned to a proof-of-stake network, introduced a new transaction type called Blob for layer 2 networks.
Dencun has launched Ethereum ‘blobs’, a temporary data storage mechanism that significantly reduces transaction fees and improves throughput on layer 2 networks by allowing a more efficient and cost-effective way to publish rolled-up data. This data is cleaned from the blockchain after approximately 18 days to maintain network efficiency.
Fee reduction
Jesse Pollack, a Base contributor, reported Network transaction fees are reduced from $0.31 to $0.0005.
Meanwhile, Base’s average fee is about $0.18, compared to $0.88 previously, according to OKLink data. The data also shows that Layer 2 network Optimism fees have decreased significantly from previous levels of over $1 to just a few cents.
StarkNet also saw a 99% reduction in fees. Argent, a prominent wallet provider on the network, reported The average swap fee was $0.04, a sharp contrast to the $6.80+ observed prior to Dencun.
Blockchain analysis platform SoSo Value confirmed This decline is “ Transfer (one-way) and swap (two-way) fees have been significantly reduced. decision, optimismand Base From 7am (HKT) on March 14th.”
Interestingly, Ethereum developers have begun storing the entire script of Bee Movie, an animated comedy featuring Jerry Seinfeld, on the Ethereum blockchain at minimal cost.
Improved adoption
As transaction fees on layer 2 networks decrease, stakeholders expect further adoption of the Ethereum network.
Brian Armstrong, CEO of Coinbase echoed This optimism highlights the potential for expanding cryptocurrency use cases while reducing transaction fees and confirmation times on layer 2 blockchains.
Likewise, Eli Ben-Sasson, Executive Director of the Starknet Foundation, said: CryptoSlate The Dencun upgrade will be considered “the moment when decentralized applications (dApps) that are otherwise not viable in terms of fees become practical.” “Today will be marked as the birth of dApp culture for all things.”