Ethereum Transaction Fees Went Down By 99% After The Dencun Upgrade – ETH Leaves The $4000 Level

The long-awaited Dencun update was successfully launched into the Ethereum’s mainnet on Wednesday, March 13. However, ETH appears to have fallen from the $4000 level.

The recent activation of the Ethereum network’s Dencun upgrade yesterday has introduced an innovative mechanism to reduce transaction costs linked to layer 2 scaling solutions. These solutions, which collect transactions before sending them to the mainnet, have seen a significant decrease in fees following the upgrade. 

As per the optimism reports, transaction fees averaging to $0.05 and a median fee of $0.0038. While the Base network reports an average transaction fee of $0.064 and a median fee of $0.0008. The Arbitrum network shows an average transaction fee of $0.5, with a median fee of $0.3553. Meanwhile, zkSync Era indicates an average transaction fee of $0.161 and a median fee of $0.0936.

While all eyes are on the recent update as it promises to transform Ethereum’s ecosystem, yet there is a noticeable tension surrounding its development. 

Ethereum’s previous upgrades such as the unsuccessful Merge update, aimed to transition Ethereum to a PoS network, resulted in a massive correction in ETH price. As the hype intensifies, the market prepares for the potential implications of this upgrade on Ethereum’s price and sentiment. 

At this time of writing, Ethereum’s (ETH) price is down by 2.11%, trading at $3,962 with a 24-hour trading volume of $21.16 billion. 

Overall, despite Ethereum’s bullish trend climbing past $4,000, the question remains if ETH will continue to move upward of if it will go on correction further.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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