Ethereum’s Dencun Upgrade Could Mean Near-Zero Fees for Layer-2 Blockchains: Fidelity Digital Assets
The Ethereum blockchain's Dencun upgrade on March 13 will enable its rollup-centric roadmap, making it a more efficient and cost-effective database for layer-2 blockchains. This will attract more users and expand the network's total addressable market. The upgrade will lower costs for layer 2 blockchains to store data on the main blockchain, potentially reducing fees for users. However, the direct positive effects for Ethereum users will be limited, as the fee reductions will not affect those transacting on the base Ethereum blockchain. Users wishing to benefit from fee changes must transact on layer 2's, sacrificing some decentralization and security. Nonetheless, transacting on Ethereum for application-specific purposes is expected to remain the best option in the medium term as layer-2 platforms mature.
