The recent Dencun upgrade on Ethereum has significantly lowered transaction costs on various Layer 2 networks, with major chains that have implemented blobs witnessing a substantial decrease in average transaction fees. This technological leap has been a boon for users and developers alike, making Ethereum-based transactions more accessible and cost-effective.

Impact of Blobs on Transaction Fees

The introduction of blobs as a new transaction type has revolutionized how data is posted on Ethereum by Layer 2 networks. Moving away from the traditional “calldata” method, blobs offer a more efficient path to fee reduction, resulting in a dramatic drop in transaction fees across several Layer 2 ecosystems. Notable examples include Optimism’s OP Mainnet and Base, as well as Zora, zkSync, and Starknet.

For instance, Base’s median gas fees plummeted from $0.5 to approximately $0.0012 right after the Dencun upgrade, according to data aggregated by Marcov on Dune. Similarly, Starknet saw its average fees for a swap reduce to $0.04 from over $6.8, showcasing the significant financial benefits the upgrade has brought to the Ethereum network.

Future Prospects and Challenges

While the immediate impact of the Dencun upgrade has been overwhelmingly positive, there are anticipations of future challenges. With over 3000 blobs already utilized, an increase in competition for blob space among rollups could potentially lead to higher transaction costs. Despite this, the current reduction in fees marks a milestone in Ethereum’s ongoing efforts to enhance scalability and affordability.

Arbitrum One, the most widely used Layer 2 network, is yet to adopt the Dencun improvements but plans to introduce blob support through its upcoming ArbOS upgrade. This move is expected to further consolidate the benefits of the Dencun upgrade across the Ethereum ecosystem.