Anticipating The Ethereum Dencun Upgrade: A Major Boost For Scalability And Gas Fee Reduction

The impending Dencun upgrade slated for Ethereum in 2024 heralds a significant advancement poised to enhance the network’s scalability and alleviate the burden of gas fees for layer-2 networks.

This upgrade is eagerly awaited as it promises to address longstanding issues within the Ethereum ecosystem, including high transaction costs, sluggish processing speeds, and resource-intensive transactions.

At the heart of the upgrade lies EIP-4844, a crucial protocol enhancement designed to drive down gas fees on layer-2 solutions.

This move comes as a welcome relief for users grappling with exorbitant transaction charges, particularly on decentralized exchanges (DEXs).

With the implementation of EIP-4844, the gas fees for executing a DEX swap are expected to witness a substantial reduction across various layer-2 networks. 

According to insights gleaned from IntoTheBlock, the gas fee for a DEX swap on Arbitrum is poised to plummet from $2.02 to a mere $0.4, while on Optimism, it is set to decrease from $1.42 to just $0.28.

Similarly, Base network users can anticipate a significant drop in gas fees, with charges dwindling from $0.58 to a negligible $0.01.

Ethereum's Dencun upgrade is set to launch in 2 days! In this chart, you can see the projected cost of a DEX swap on various L2s after the upgrade