Layer 2 Blockchains Become Cheaper After Ethereum's Dencun Upgrade
Summary
Ethereum's Dencun upgrade reduces transaction costs on layer 2 solutions by introducing a mechanism to batch and compress transactions using Binary Large Objects (blobs). This has led to a significant drop in average transaction fees on scaling solutions like Optimism, Base, Arbitrum, zkSync, and Zora. The use of blobs instead of call data is expected to reduce transaction costs on layer 2 solutions by 90%. However, the upgrade has not yet increased investor interest in the native tokens of rollups.
