Ethereum’s highly anticipated update is finally here. Is this the moment when user fees will start to drop on Ethereum?
Just before the Dencun update went live, the average gas fee on Ethereum was 66 Gwei — one of the highest levels in the last six months. It cost $5.49 per Ethereum to send it.ETHIt costs about $94.56 for tokens to be exchanged on a decentralized platform (DEX). Commission for one token that is not fungible (NFTIf you were to sell ) over the Ethereum network, it would cost approximately $159.81.
It’s finally here! Dencun update Has the high commission problem been resolved? They plan to accomplish this through “proto-danksharding,” Dencun’s main proposal for EIP 4844.
Dencun and the Crypto Ecosystem
Grayscale analysts believe that full Dencun implementation is required for Ethereum to be successful. “the most secure” blockchain for decentralized applications (dapps). As they try to lure users to their platform, the competition will increase.
The report Ethereum is attracting more users due to its network effects and benefits in terms of liquidity. financial Developers and applications.
Ethereum’s layer-2 network growth has also attracted more users to the ecosystem. According to GrayscaleEthereum’s main net users remained virtually the same in 2023 while other layer-2 networks like zkSync Arbitrum Optimism Base have experienced steady growth.
Parallel to the second cryptocurrency is the capitalization for a list of all projects. altcoins There is a growing interest in layer-2 solutions on the Ethereum Blockchain.
What say experts about the gas tax?
Ansgar Dastrichs is a researcher from the Ethereum Foundation. In an interview, Ansgar explained to Consensys how the Dencun upgrade has affected the protocols of the Ethereum Network. “have just to be completed with everyone else using the same mechanism.” Now, thanks to the new update, you can put them in their proper place.
“Now it’s more about no longer having roll-ups to suffer from congestion.”
Ansgar Dietrichs – researcher at Ethereum Foundation
The following is a breakdown of the. report Max Wadington is an analyst with Fidelity Investments. He says that the fees reductions for layer-2 users won’t directly affect users of the Ethereum network.
“In the short term, users who wish to benefit from this fee change must sacrifice some decentralization and security by transacting on l2s instead of Ethereum. This will certainly spur more users to bridge assets elsewhere.”
Max Wadington is a Fidelity Investments analyst
According to Crypto.news, Philippe Schommers is the head of Infrastructure at Gnosis. “blob” The proto-danksharding transactions show that we have overcome conceptual obstacles to create a more scalable Ethereum Network.
It is important that temporary data be stored to help combat government resource bloat. All data stored by layer-2 on Ethereum nodes was previously kept indefinitely. This data type is now being deleted within two weeks.
“It’s important to understand that, for now, the changes that Dencun brings will be more behind the scenes than end-user-focused. However, it’s still a building block to more synchronous updates that will benefit users more. The main thing to remember is that if an upgrade is beneficial, then having side chains synchronizing with it will spread those benefits further.”
Philippe Schommers is the head of Infrastructure at Gnosis
Reduced fees: Expectation and Reality
On March 11th, IntoTheBlock’s experts forecast that the price of a new Dencun would increase after it was updated. DEX Swap on different layer-2 solutions including Arbitrum, OptimismThen, BaseIt would reduce.
Arbitrum’s gas prices are expected to plummet, possibly from their current $2.02 down to just $0.40.
“There are over 1.8 million daily transactions among top Ethereum l2s, with Arbitrum accounting for over 1 million of the total.”
Experts at IntoTheBlock
Dencun’s solution was different from other layer-2 options.
After the Ethereum update, there was significant volatility on the network, with Gwei sizes ranging between 32 Gwei and 115 Gwei.
Ethereum fees on the network remained constant at 15:08 UTC, March 13th. This was just over an hours after the launch of this update. The layer-2 chain fees showed a slight decline. You can, for example. Starknet‘s fee rate dropped by threefold.
X-users noted that soon after the upgradeThere were changes to gas prices for layer-2 and they hoped Ethereum would follow suit.
The day after the update there was an improvement. Ethereum Gwei was lowered to 44. The layer-2 network fees have also dropped significantly. Optimism The network shows a noticeable decline.
Forecast cautious but optimistic
Developers are cautiously proceeding with the Dencun upgrade, despite its promise to enhance Ethereum. The introduction of new consensus mechanisms, and architectural changes may bring unforeseen challenges.
The Dencun Update has been an obvious catalyst for Ethereum’s growth. This is evident by the significant reduction of fees following the update, as well as the increase in users and developers.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: crypto.news
