With the Dencun update deployed on Ethereum in March 2024, transaction costs dropped by 95 %: an average swap costs only $ 0.39, compared to around 86 dollars before. However, the price of the ETH fell 53 % in a year.
Ethereum: transaction costs in sharp decline after Dencun
Launched a year ago now, the Dencun update, which combines Cancun (Execution Layer) and Deneb (Consensus Layer) improvements, has revolutionized the Ethereum ecosystem and improved its scalability. It made it possible to considerably reduce the costs of transactions on second -layer solutions (Layer 2).
Before updating, a simple exchange on Ethereum could cost up to 86 dollars in fresh. A year later, This cost fell to $ 0.39according to data from Etherscan.
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NFT transactions fees have followed the same trend, going from $ 145 on average to just $ 0.65. This drop is particularly notable on solutions such as Arbitrum and Optimism, which directly benefit from the improvements made by Dencun.
Today, users of Ethereum Layer 2 take advantage of a competitive network in the face of other competing blockchains, but to the detriment of activity on Layer 1.
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What impacts for the Ethereum ecosystem?
If Ethereum has become more economical to use after Dencun, the drop in costs was not accompanied by an increase in the price of the eth As we could have expected. On the contrary, since the update, the value of the asset has dropped by 53 %, going from $ 4,070 in March 2024 to around $ 1,891 a year later.
This drop can be explained by various factors: difficult macroeconomic conditions (the S&P 500 index has lost more than 9 % from its historic summit on February 19), significant sales of ETH by financial institutions, the rise of other blockchains like Solana or the success of Etf Bitcoins, which leads A drop in interest for Ethereum.
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Despite this, Ethereum is preparing for its next major update, Pectra, which aims to double the data space available for Layer 2 and improve network efficiency.
However, technical problems were noted during the tests, delaying its deployment. According to Dominik Harz, co -founder of Build on Bitcoin (Bob), “Ethereum has recently underperform, and even if Pectra is an advance, it is not a miracle solution”.
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After training in journalism, I worked for a few years in general press before discovering the world of personal finance and the scholarship. Fallen into cryptos since 2020, I am particularly interested in the decryption of news that influence the Cryptos markets. My goal? Always teach my readers more by providing the most precise and the most just possible information.
Justine Ferrari
18 articles
