The recent Dencun upgrade on the Ethereum network has resulted in a significant decrease in transaction fees for Layer 2 solutions. Protocols such as Optimism, Base, Zksync, and Arbitrum have seen a 50% reduction in fees due to the implementation of call data to blobs.
While not all Layer 2 solutions have been upgraded yet, those that have are experiencing much more favorable transaction fee rates compared to the rest of the crypto blockchain. It is important to note, however, that this upgrade has not affected the high transaction fees on Ethereum itself. Nonetheless, it is a promising step towards making transactions more affordable on Layer 2 solutions.
One of the most notable fee drops has been seen on the Arbitrum network, where over 80% of transaction charges have been eliminated. The average fee has plummeted from $2.02 to $0.5, with the median fee now at $0.3552. Prior to the Dencun upgrade, Arbitrum had one of the highest transaction fees among Layer 2 networks on Ethereum.
Optimism, which recently reached a new all-time high, has also experienced a 58% reduction in gas fees. While it previously had one of the best transaction fee rates on Ethereum, it has taken a hit following the Dencun upgrade. The average fee on Optimism now stands at $0.05, with a median cost of $0.0038.
The Base network leads the way in terms of transaction fee reduction, with over 88% of fees being eliminated. The average fee on Base has dropped from $0.58 to $0.0064, and the median fee is now at $0.0008.
Despite the positive impact of the Dencun upgrade on Layer 2 solutions, transaction fees on Ethereum’s mainnet remain unchanged. There have been reports of users spending exorbitant amounts on fees for transactions on the mainnet. For example, in November 2022, a user paid 93 ETH ($113,000) in fees for six transactions using a MEV bot. Another user reportedly spent approximately 216 ETH ($350,000) on a failed transaction. While the introduction of Layer 2 solutions has provided alternatives for cheaper transactions, users are still hoping for a reduction in the average fee of $18 on Ethereum’s mainnet.
