Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Ethereum’s Dencun Upgrade Set to Drive Near-Zero Transaction Fees

Ethereum’s Dencun Upgrade Set to Drive Near-Zero Transaction Fees

CryptopotatoCryptopotato2024/03/09 16:16
By:Wayne Jones

The upgrade marks the start of Ethereum’s rollup-focused roadmap, laying the groundwork for L2 platform ecosystem growth.

The forthcoming Ethereum Dencun upgrade scheduled for March 13 offers a chance for near-zero transaction fees for layer 2 (L2) solution users, possibly drawing in more new ones, as per a research report by Fidelity Digital Assets.

The forthcoming upgrade marks the initial step in Ethereum’s rollup-focused roadmap. This advancement will empower the network to function as a resilient database, enhancing the efficiency and cost-effectiveness of data storage for layer 2 blockchains.

Dencun Upgrade to Reduce Costs for L2 Blockchains

Analyst Max Wadington wrote that the Dencun upgrade would provide the necessary scaling capability to accommodate millions of users on layer 2 blockchains, positioning Ethereum as a more suitable distributed database for other blockchains. These enhancements are anticipated to attract significantly more users to the Ethereum ecosystem and broaden the network’s total addressable market (TAM).

Moreover, the upgrade is poised to reduce costs for layer 2 blockchains to store data on the main network. This cost reduction is expected to be transferred to users through lower fees.

Layer 2 solutions are separate blockchains constructed on top of layer 1, or the base layer, to alleviate scalability issues and efficiently manage data. However, the upgrade is not expected to benefit Ethereum users significantly, as the fee reductions promised to layer 2 users will not extend to those transacting on the base Ethereum blockchain.

Wadington explained that in the short term, users seeking to capitalize on this fee adjustment would need to compromise some decentralization and security by conducting transactions on layer 2 solutions instead of directly on the Ethereum network. Hence, it will likely encourage more users to bridge assets to other platforms.

The report added that conducting transactions on Ethereum for application-specific purposes would remain the preferred choice in the medium term, especially as layer 2 platforms mature.

Ethereum Price Surges

Ethereum surpassed the $3,000 mark and surged to over $3,900 earlier this week, reaching its highest value in almost two years.

Investor sentiment reflects optimism regarding the forthcoming Dencun upgrade and the potential approval by the U.S. Securities and Exchange Commission (SEC) of Ethereum exchange-traded funds(ETFs). Additionally, on-chain data reveals that nearly $200 million worth of ETH was burned in the past week, reducing the altcoin’s circulating supply and potentially fueling further price appreciation.

According to CoinGecko data , Ethereum is trading at $3,789, up 8% in the last week. Notably, the second crypto by market cap has surged over 60% over the last month.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

After bitcoin returns to $90,000, is Christmas or a Christmas crash coming next?

This Thanksgiving, we are grateful for bitcoin returning to $90,000.

BlockBeats2025/11/28 08:43
After bitcoin returns to $90,000, is Christmas or a Christmas crash coming next?

Bitcoin security reaches a historic high, but miner revenue drops to a historic low. Where will mining companies find new sources of income?

The current paradox of the Bitcoin network is particularly striking: while the protocol layer has never been more secure due to high hash power, the underlying mining industry is facing pressure from capital liquidation and consolidation.

区块链骑士2025/11/28 08:23
Bitcoin security reaches a historic high, but miner revenue drops to a historic low. Where will mining companies find new sources of income?

What are the privacy messaging apps Session and SimpleX donated by Vitalik?

Why did Vitalik take action? From content encryption to metadata privacy.

ForesightNews 速递2025/11/28 08:23
What are the privacy messaging apps Session and SimpleX donated by Vitalik?

The covert war escalates: Hyperliquid faces a "kamikaze" attack, but the real battle may have just begun

The attacker incurred a loss of 3 million in a "suicidal" attack, but may have achieved breakeven through external hedging. This appears more like a low-cost "stress test" targeting the protocol's defensive capabilities.

ForesightNews 速递2025/11/28 08:23
The covert war escalates: Hyperliquid faces a "kamikaze" attack, but the real battle may have just begun