Ethereum rollup fees drop after Dencun update

Key facts:
  • The update incorporates so-called blobs in Ethereum.

  • At Optimism, transactions can cost less than a cent on the dollar.

With the Dencun update that was activated on Ethereum on March 13, one of the most anticipated consequences was the decrease in commissions to operate both on the main network and on the second layers. The implementation of new data organization structures has already begun to have positive effects.

A few hours after Dencun was activated, several Ethereum second layer (L2) networks show decreases in their fees. Two clear examples are Optimism and Starknet, whose rates decreased by 96% and 74%, respectively., for sending ether (ETH) through its rollups. For the token exchange, the fee reduction was even greater. Likewise, zkSync Era reduced its network fees by almost 50%.

The three networks mentioned are examples of those that implemented the data blobs introduced by Dencun from minute zero. However, other popular L2s also benefited indirectlythanks to a 32% drop in Ethereum mainnet fees for sending ETH and a similar drop for token swaps.

Ethereum L2 Dencun Commissions.
On the left, the commissions before Dencun; On the right, the commissions after the update. Source:

For example, Arbitrum and Polygon had a decrease of 33% and 30% for ETH sending and 30% and 29% for token exchange, respectively. Although they are networks that (at least not yet) do not make use of the new features in Dencun, they do take advantage of the lower costs by bringing their transaction information to the Ethereum main network.

As seen in the image above, the Base networks (developed by the Coinbase exchange) and Zora are also among the L2s that have immediately taken advantage of the benefits of Dencun. In these cases, Rate reductions were close to 93% for Base and 89% for Zora.

Why are fees going down on Ethereum?

In previous CriptoNoticias publications we have explained why Dencun allows commissions to be reduced both in the main network and in the second layers. Basically, it is because It makes more efficient use of space in the blocks, which allows reducing its demand and increasing its supply.

To do this, it makes use of data blobs, which help occupy all the space available in the blocks with almost no waste. In addition, with Dencun, off-chain data saving methods were introduced for nodes, which can use them whenever they want, but without this data taking up space unnecessarily in Ethereum’s accounting.

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