Ethereum Layer 2 Fees Plunge by Up to 95% Following Dencun Upgrade

The Ethereum Layer 2 fees have seen a significant drop of around 90 to 95 percent after the Dencun upgrade added EIP-4844 'blob' space, which is far cheaper for rollups to store data than legacy calldata.

This change allowed most major L2s to switch their batch posting to blobs and double down on compression and batching, leading to lower end-user fees.

The drop in fees isn't uniform, with prices still varying by app type, time of day, and demand for limited blob space. Fees can spike during congestion and complex swaps cost more than transfers.

In addition to EIP-4844, other factors contributed to the decrease in costs, including engineering work that improved compression and batching efficiency, as well as wallets and account abstraction improvements.