Ethereum Layer 2 chains see nearly 32 million transactions per week after Dencun upgrade

Ethereum Dencun upgrade resulted in a significant decline in Layer 2 gas costs, driving higher on-chain activity to these protocols.
Transactions climbed to nearly 32 million per week on Arbitrum, Optimism and Base.
Prices of Layer 2 tokens climbed between 1% and 8% on Saturday.

Ethereum Layer 2 gas costs plummeted in response to the Dencun upgrade. Data from intelligence tracker IntoTheBlock show that the Dencun upgrade has reduced the transaction cost of Layer 2 chains and promoted an increase in on-chain activity on these protocols.

Ethereum Layer 2 chains see spike in activity

While Solana is making headlines for failed transactions and rising DEX activity and meme coin narrative, Ethereum Layer 2 chains are seeing a consistent growth in activity. The Dencun upgrade resulted in a significant decrease in transaction cost on Layer 2 chains like Arbitrum (ARB), Optimism (OP) and Base (BASE).

Transaction fees on Layer 2 chains

Data from IntoTheBlock shows an increase in activity on the Layer 2 chains, as users respond to the declining transaction costs. This was anticipated as a result of the Dencun upgrade.

Number of transactions on Ethereum Layer 2 chains

The radical increase in number of transactions despite rising competition from Solana and alternative chains marks a significant development in the Layer 2 ecosystem. As on April 6, Layer 2 tokens Polygon (MATIC), Stacks (STX), Mantle (MNT), ARB, ImmutableX (IMX), Starknet (STRK) piled on between 1% and 8% gains on Saturday.

Layer 2 tokens

On the weekly timeframe, Layer 2 tokens have printed nearly double-digit losses for holders. It remains to be seen whether the demand from users can aid recovery in L2 tokens in the coming week.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram