How the Dencun Upgrade Affected the Ethereum Network: Galaxy Research

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


  1. Increased Bot Activity on Layer-2
  2. Leaders in Transaction Failures on Layer-2
  3. Experts' Opinions on Bots' Role

  4. Galaxy Research released findings from an analysis of the Ethereum network post-Dencun upgrade. The upgrade reduced fees but caused a significant increase in transaction failures and bot activity on layer-2 solutions such as Arbitrum and Base.

    Increased Bot Activity on Layer-2

    The study revealed that 2,225,958 blobs were purchased at an average cost of $1.59 per blob, and 1,104,315 blobs carrying layer-1 transactions at an average cost of $5.22 per transaction in the 150 days after the Dencun upgrade. Analysts noted that daily transaction activity on rollups increased to 6.65 million.

    There have been 2,225,958 blobs purchased at an average cost of $1.59/ blob and 1,104,315 blob carrying Layer 1 transactions at an average cost of $5.22/transaction in the 150-day period following the implementation of EIP-4844.Christine Kim

    Leaders in Transaction Failures on Layer-2

    Coinbase's Layer 2, Base, showed the highest failure rates from high-activity addresses, peaking at 41.6%, followed by Arbitrum at 20.87% and OP Mainnet at 12.85%. For low-activity addresses, the failure rate reached 4.02%.

    Experts' Opinions on Bots' Role

    Michael Nadeau, founder of The DeFi Report, emphasized that bots play a crucial role in providing liquidity on public blockchains since they also pay fees. Nadeau refuted claims that bots are fake and spam and shouldn't be included in economic calculations.

    The Dencun upgrade led to reduced fees and increased activity on layer-2 solutions, but also resulted in higher transaction failure rates and increased bot activity. Experts argue that bots play a vital role in the ecosystem despite the challenges they pose.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Google Cloud's New Service Enhances Key Management Security

Google Cloud's new Multiparty Compute service aims to mitigate risks related to key management in digital asset custody by splitting signing authority among independent participants.

user avatarKofi Adjeman

Google Cloud Launches New Service for Digital Asset Custody

Google Cloud has launched a new Multiparty Compute service to enhance institutional digital asset custody, addressing custody risks and potentially lowering barriers for firms in the digital asset market.

user avatarNguyen Van Long

ACI Worldwide and Circle Launch USDC Settlement Pilot in Colombia

ACI Worldwide and Circle announced a collaboration to demonstrate USDC settlement integration into existing bank payment systems.

user avatarSatoshi Nakamura

Binance Wallets Drained in Major Security Breach

Wallets linked to Binance were drained of at least $55 billion, raising concerns about the security of decentralized exchanges.

user avatarJesper Sørensen

Decentralized Exchanges Facilitate Fund Swaps in Binance Hack

Decentralized exchanges like Uniswap and Aave are being used to swap frozen stablecoins for Ethereum following the Binance wallet draining incident, complicating recovery efforts.

user avatarRajesh Kumar

Bron Joins Hashgraph Association's Global Membership Program

Selfcustody platform Bron has joined the Hashgraph Association's Global Membership Program to enhance its connection with the Hedera ecosystem.

user avatarLucas Weissmann

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.