Ethereum Layer 2 Fees Plummet by 90% with EIP-4844 Upgrade

The Ethereum Layer 2 fees have seen a significant drop of around 90 to 95% due to several key changes. The Dencun upgrade added EIP-4844, which introduced 'blob' space for rollups, significantly reducing the cost of storing data on the network.

With blobs, rollups can store their transaction data separately from calldata, making it cheaper and more efficient. This change has led to a major reduction in costs for users, with fees dropping even further during busy periods on a given L2.

The introduction of EIP-4844 also created a separate market for blob space, decoupling the demand for L1 blocks from rollups. This means that when demand for L1 blocks spikes, rollups feel it less than before, making their fees more stable.