The much-awaited Dencun Ethereum upgrade finally went live on March 13, bringing with it the promise of improving the network’s cost-effectiveness. Following the upgrade, Ether’s (ETH) price dropped sharply from a high of $4,082 to $3,932, according to data from CoinMarketCap.
Data from Cointelegraph Markets Pro and TradingView shows that Ether resumed its fall on March 14, dropping 3% over the last 24 hours to trade at $3,848 at the time of publishing.
ETH/USD daily chart. Source: TradingView
Ethereum layer-2s see reduced transaction costs after the Dencun upgrade
The Ethereum network has undergone several upgrades, with each aimed at improving the effectiveness of the layer-1 blockchain either by improving transaction speed, lowering gas fees or changing the consensus mechanism. This improves the value of the network in the long run.
“Dencun will change how Ethereum developers build smart contracts, leading to more secure and user-friendly applications,” Richard Meissner, co-founder of Safe, said in an email to Cointelegraph.
Independent investor VirtualBacon commented on the success of the Dencun upgrade, saying it seeks a “75% cut in transaction costs on layer-2 networks, set to reshape the ecosystem’s capacity.”
Ethereum layer-2 network Starknet acknowledged that this aim had been achieved on the layer-2 scaling protocol: “Among Validity Rollups, Starknet has the highest share of L1 data availability costs, making it the biggest beneficiary of this upgrade.”
“As such, we have seen a drastic reduction in gas fees, by more than 90%, thanks to it.”Transaction costs on Ethereum L2s. Source: @Starknet/X
Starknet shared the chart above on the X social media platform showing transaction fees on layer-2s, such as Starknect, OP mainnet, Base, zkSync and Zora, dropping several folds.
This was reiterated by market analyst Psquare Daily, who said, “Ethereum Layer-2 (L2) protocols have witnessed significant drops in transaction fees, with reductions of up to 99%.”
According to data from Dune, the median gas fees on Starknet have fallen from around $6 on March 1, just before Dencun went live, to about…
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