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

Gate Reports Impressive Cold Storage Coverage Ratio

Gate's cold storage coverage ratio reached an impressive 104.58%, ensuring all user assets are secure.

user avatarRajesh Kumar

Gate Launches Innovative Proof of Security Framework

Gate has launched a new asset security verification framework called Proof of Security (PoSEC), becoming the first digital asset trading platform to implement such a system.

user avatarMiguel Rodriguez

US DOJ Launches Task Force to Combat AI Misuse

The US Department of Justice has launched a task force to combat the misuse of advanced artificial intelligence, ensuring American leadership is not compromised by bad actors.

user avatarLuis Flores

Mercado Bitcoin Suffers Major Security Breach with $48 Million Stolen

Mercado Bitcoin has reported a significant security breach, with over $48 million in assets stolen across 11 blockchains. The breach occurred on November 2, 2023, challenging the exchange's claims of containment.

user avatarArif Mukhtar

Trump's Stock Market Celebration Turns Sour

President Trump's celebration of Wall Street's highs quickly turned negative as the SP 500 plunged, prompting discussions of emergency trading halts.

user avatarMaria Gutierrez

Market Faces Emergency Trading Thresholds Amid Selloff

The US stock market approached emergency trading thresholds as the SP 500 faced significant declines, raising concerns among traders.

user avatarDavid Robinson

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.