• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Dencun Upgrade: Challenges for Ethereum Layer 2 Networks

user avatar

by Giorgi Kostiuk

10 months ago


  1. Ethereum Layer 2 Networks Face Challenges
  2. Solana Faces Similar Woes
  3. Conclusions and Implications

  4. The Dencun upgrade in March 2024 was a significant milestone for Ethereum, but it also brought about unforeseen challenges, particularly for Layer 2 networks.

    Ethereum Layer 2 Networks Face Challenges

    Christine Kim, a researcher at Galaxy, highlighted that this upgrade inadvertently led to an increase in transaction failures across these networks. In her August 21 analysis titled '150 Days After Dencun,' Kim revealed that since the activation of EIP-4844, Ethereum L2’s daily transactions more than doubled, growing by 6.65 million within 150 days. However, this increase in transaction activity has also been accompanied by a higher rate of failures, which Kim attributes to bot activity driven by the reduced fees. Most of the transaction failures are linked to highly active addresses, which are likely bots. The low fees on L2s may be encouraging this spike in bot activity. For average users with normal transaction volumes, the failure rates are only slightly higher than they were before the Dencun upgrade. Research showed that Arbitrum, Base, and OP Mainnet have encountered notable increases in the proportion of failed transactions. Base saw its failure rate climb to 21%, Arbitrum to 15.4%, and OP Mainnet to 10.4% within 150 days following Dencun. On the other hand, the low-activity addresses with five or fewer daily transactions saw a maximum failure rate of 4.02% across all networks. OP Mainnet’s failure rate for these addresses decreased since March 13, 2024, while Base’s rate has only slightly increased. Interestingly, Arbitrum’s failure rate for low-activity addresses surged by 545% post-Dencun.

    Solana Faces Similar Woes

    Transaction failure rates are not only restricted to Layer 2 networks. In fact, the popular Layer 1 network, Solana, also has a high rate of transaction failure. In its recent report, Coinbase stated that of all Solana non-vote transaction fees, between 25% and 45% are spent on failed transactions.

    Conclusions and Implications

    The reduction in rollup transaction costs and the rise in failures among high-activity addresses suggest that bot activity is likely driving the increased failure rates on these rollups, as per the researcher. The current situation underscores the necessity of exploring new solutions to reduce transaction failure rates and enhance network efficiency.

    Thus, the Dencun upgrade has led to significant changes in Ethereum Layer 2 networks, necessitating further analysis and the development of solutions to reduce failed transactions.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Neo Pepe Targets $50 Million: Market Impact and Key Insights

chest

Neo Pepe launches presales aiming for $50 million, capturing market attention and potentially influencing BTC and ETH.

user avatarGiorgi Kostiuk

Trump's Bill and Its Potential Impact on Crypto Taxation

chest

Trump's bill discusses changes in cryptocurrency taxation that may influence the market and tax burdens for miners and stakers.

user avatarGiorgi Kostiuk

Dollar Weakness: Implications for the US Economy and Global Financial Markets

chest

The weakness of the US dollar has significant implications for the country’s economy and global financial markets. We explore the effects and key factors.

user avatarGiorgi Kostiuk

Ripple Issues Additional RLUSD Tokens and Receives Support from AMINA Bank

chest

Ripple has issued 16 million additional RLUSD tokens, gaining AMINA Bank's endorsement, highlighting the growing interest in digital assets.

user avatarGiorgi Kostiuk

Ripple Issues 16 Million RLUSD Tokens, Supported by AMINA Bank

chest

Ripple announced the issuance of 16 million RLUSD tokens. AMINA Bank supports the digital currency for the first time, highlighting its growing popularity.

user avatarGiorgi Kostiuk

Federal Reserve To Maintain Interest Rates Until Late 2025

chest

Analysts predict that the Federal Reserve will not lower interest rates until late 2025, impacting the cryptocurrency markets.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.