Ethereum’s biggest update of the year, Dencun, is complete. The introduction of new transaction types called “blobs” caused euphoria among supporters of the ecosystem on March 13th. Because thanks to this new transaction type, Ethereum was able to reduce fees on its Layer 2 networks reduce by up to 90 percent.
In the race for supremacy among smart contract blockchains, the upgrade acts like a pit stop for the blockchain. With new tires in the form of efficient Layer 2 networks, crypto’s largest ecosystem is getting back on the racetrack. And tries to increase the distance to Solana, Avalanche and Co. again.
Layer 2 networks on Ethereum: Cheaper than Solana?
By using various Layer 2 networks, Ethereum relies on a modular form of blockchain scaling. In contrast, Solana, Ethereum’s largest competitor, has so far successfully adopted a scaling approach at the mainchain level. And is therefore considered by many to be a pioneer in terms of blockchain efficiency – with high speed and low fees.
However, initial comparisons show that Ethereum’s Layer 2 networks can now keep up with the high-performance blockchain again after Dencun. The average transaction fees of the largest L2s, Arbitrum and Optimism, were now below those of Solana. However, the chart also makes it clear in the case of Base: With strong increases in network activity, the fees can occasionally escalate and be subject to strong fluctuations.
What are the consequences of the biggest upgrade of the year for Ethereum and how investors can benefit from it? you read in the new BTC-ECHO ETH report.
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