How the Dencun Upgrade Affected the Ethereum Network: Galaxy Research

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by Giorgi Kostiuk

2 years ago

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  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.

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