Ethereum Dencun Upgrade to Drastically Reduce L2 Gas Fees with EIP-4844

Ethereum logo and a hand pressing UPGRADE

After the Ethereum Dencun upgrade this week, EIP-4844 is set to revolutionize the landscape of Layer-2 (L2) gas fees, bringing significant reductions across various L2 networks. Arbitrum, Optimism, and Base are all expected to see drastic reductions in gas fees for decentralized exchange (DEX) swaps.

Revolutionizing L2 Landscape

After the Ethereum Dencun upgrade this week, EIP-4844 is poised to revolutionize the landscape of Layer-2 (L2) gas fees. According to IntoTheBlock statistics, significant reductions in gas fees for decentralized exchange (DEX) swaps are expected across various L2 networks. Arbitrum will witness a reduction from $2.02 to $0.4, Optimism from $1.42 to $0.28, and Base from $0.58 to $0.01.

Dencum upgrade projected gas cost of  a DEX swap

The Dencun upgrade, featuring the eagerly awaited proto-danksharding functionality through EIP-4844, promises substantial advancements in Ethereum’s ecosystem. Notable enhancements include the introduction of blob transactions and transient storage, both aimed at lowering transaction costs on Ethereum’s auxiliary L2 networks.

Going Live On March 13

Scheduled to go live upon Ethereum blockchain reaching slot 8626176, estimated to occur at 13:55 UTC on March 13, EIP-4844 is poised to reshape Ethereum’s data processing landscape. By integrating off-chain “data blobs,” this upgrade facilitates the inclusion of additional data in Ethereum transactions without affecting block processing time.

Moreover, EIP-4844 is designed to tackle the rising costs associated with Ethereum data, a move that could significantly enhance the appeal of projects leveraging Ethereum’s infrastructure. Projects like Celestia, Avail, and EigenDA stand to benefit from reduced transaction costs, potentially driving higher adoption rates and transaction volumes.

Proto-danksharding, as introduced in this upgrade, represents the initial phase towards implementing “danksharding,” a crucial technological advancement aimed at bolstering blockchain scalability.

Included Indicators:

  • Dencun Savings
  • Fee Comparison
  • Active Addresses
  • Active Addresses Share
  • Transaction Volume
  • Large Transaction Volume
  • Number of Transactions
  • Transactions Market Share
  • Average Transaction Size
  • New Adoption Rate

Author: Candace

Candace loves the arts. She holds some bitcoins.