Ethereum Layer 2 Transaction Fees Drop Significantly After Climber Upgrade

The recently launched Dencun upgrade has lived up to expectations, with transaction fees on Ethereum’s L2 networks such as Optimism and Base dropping significantly.

Ethereum’s L2 scaling solution recorded a significant reduction in average transaction fees following the implementation of the Dencun upgrade.

Dencun upgrade launch

Recall that the long-awaited Dencun upgrade went live on the Ethereum mainnet yesterday, March 13, precisely at 13:55 UTC.

Dencun represents the most significant upgrade to Ethereum since the “merge,” introducing a mechanism to reduce transaction costs on the L2 network.

With the implementation of Dencun on the Ethereum mainnet, the L2 network has found a new way to store data, known as binary large objects (blobs).

The blob feature allows L2 networks to store data off-chain, which becomes inaccessible after three weeks, rather than the expensive “call data” solution, which stores data permanently.

L2 network transaction fees drop

Since the Dencun upgrade went live yesterday, it has lived up to expectations as transaction fees on top L2 networks like Base, Optimism, and zkSync have dropped dramatically.

The latest data from Marcov’s Dune-based tracker highlights a significant drop in transaction fees on Ethereum’s main L2 network.

For example, the average transaction fee on Optimism was about $2.44 per hour before Dencun went online, but has now dropped to $0.068. Similarly, the average transaction cost for Coinbase’s Layer-2 Base also fell from $1.212 to $0.196.

Additionally, zkSync’s average fee dropped from a daily high of $0.546 to $0.162, while the Zora network’s transaction costs also dropped from $0.752 to $0.003.

It should be mentioned that the trend towards lower transaction fees on L2 networks where blobs have been implemented is dominant.

The average transaction cost on L2 networks, which have not yet implemented the upgrade, remained unchanged. For example, Arbitrum falls into this category, with its average transaction cost fluctuating between $0.65 and $0.84 over the past 24 hours.

However, high fees on Arbitrum will soon be a thing of the past as the team behind the network plans to integrate with the Dencun improvement today.

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