Daily transactions on the Coinbase Ethereum layer-2 network Base soared to an all-time high of 2 million on March 16, shortly after the Dencun upgrade.
Before the upgrade, Base processed approximately 440,000 transactions per day. However, the day after the upgrade, this number surged to 1.1 million, and the trend continued, culminating in the record-breaking 2,064,920 transactions on March 16.
Simultaneously, the number of daily new users on Base skyrocketed to 666,866 on March 16, marking a remarkable 3,200% increase compared to the average in the days leading up to the Dencun upgrade.
The significant surge in transactions, a 350% increase, is attributed to a substantial reduction in fees on Base post-Dencun upgrade. On average, transaction fees on Base have plummeted by over 60% since the upgrade, as reported by Blockscout.
The Ethereum Dencun upgrade, incorporating Ethereum Improvement Proposal 4844, introduced data blobs or proto-danksharding to reduce layer-2 transaction fees. This enhancement in L2 data availability led to a staggering 90% reduction in gas costs for some networks.
Leading layer-2 networks, including Arbitrum, Optimism, Base, and zkSync Era, witnessed a significant decrease in average transaction fees, ranging from 60% to 90%, post-upgrade, according to Dune Analytics.
Arbitrum and Optimism continue to dominate the layer-2 ecosystem, boasting a combined total value locked of $23 billion and capturing a substantial market share of 42% and 23%, respectively.
While Ethereum layer-1 gas fees have remained high amid the asset’s surge past $4,000, they have since receded. Currently, an Ether transfer costs approximately $2.1, a USD Coin transfer around $5, and a swap on Uniswap is roughly $16, as per Gasfees.io.
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