The Ethereum Dencun Upgrade was officially implemented on March 13th, 2024 with the livestream from Ethereum Foundation showing how the upgrade was done.
After the upgrade there are several changes that were made and have already shown results, especially the implementation of the EIP or Ethereum Improvement Proposal Number 4844.
The implementation of this proposal has seen many Ethereum layer two blockchain fees go down by a mile, starting with one of the most popular ones which is StarkNet.
Ethereum Layer Two Fees Went Down
StarkNet was the first to show that their blockchain fee when processing Ethereum transactions has gone down significantly.
From its tweet that was made after the Dencun upgrade went live, the fee it takes to process Ethereum transactions on the layer two blockchain is only around $0.05 to $0.03 per transaction.
This is a significant decline from its previous fees ranging in the $1 to $0.1 mark, which was originally okay, but not cheap enough to compete with other blockchains.
Other newer generation blockchains has transaction fees in the range of less than $0.01 to $0.00001 with blockchains such as Solana giving high efficiency due to the different nature of the non-EVM implementation on the chain.
Even though StarkNet has not reached that level yet, the progress of lowering transaction fees for Ethereum transactions has been successful thanks to its layer two blockchains such as StarkNet.
Jumper Exchange, one of the decentralized exchanges (DEX) that lives on the Ethereum Ecosystem, has created a summary of the change in gas fees that has been happening since the upgrade happened.
The DEX noted that most transaction fees have gone down significantly with Optimism giving transaction fees lower than $0.01.
This is important to highlight because Vitalik Buterin, the man behind Ethereum, previously stated that Ethereum’s fees can go down to less than $0.01 after the Dencun Upgrade.
Even though he did not promise anything and the statement is only part of a speculation, it was one of the most awaited changes by the Ethereum community.
Looking at Optimism, the statement has been fulfilled as the transaction fees for Ethereum transactions with the help of the layer two blockchain, Optimism, has gone down to exactly that.
Some are Still Expensive with Mediocre Speed
Sadly, looking at other layer two blockchains on the list, some are still chagrin fees higher than $0.01. This is especially significant regarding Arbitrum which still charges $0.38 for ETH transfers between wallets and around $1 for swap or transactions.
Arbitrum is one of the most highlighted layer two blockchain for Ethereum because it currently processed the most amount of transactions for Ethereum, dominating the Ethereum layer two blockchains compared to others.
Its transaction count exceeds even Optimism and Polygon, making it the most used layer two blockchain in the Ethereum Ecosystem.
Another aspect to highlight is the transaction speed of Ethereum, which was said to increase to around 100,000 transactions per second.
This currently has not been realized yet as the transaction speed of these transactions still follows the speed of the layer two blockchains that processes the transactions.
Overall the impact of the upgrade has only been prominent on the fees that are lowering, but regarding the speed, nothing has changed much.
Regarding Ethereum itself, the blockchain is pretty much still the same without its layer two blockchain, as fees are still standing around $20 with transaction speed of around 50 transactions per second.
So, if you want to use the Ethereum ecosystem it is highly recommended to use its layer two blockchains to process transactions and not use the Ethereum blockchain, to enjoy all the benefits of the upgrade.
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