Ethereum's Dencun Upgrade

Ethereum's Dencun upgrade in March 2024 introduced proto-danksharding (EIP-4844), reducing Layer 2 transaction fees by up to 99%. Average transaction costs on Optimism, Arbitrum, and Base dropped from $0.50 to under $0.001, making Ethereum-based DeFi and NFTs economically viable for everyday users and driving a 300% increase in L2 transaction volume within six months. This cost reduction is 10x cheaper than the average transaction fee on Solana, a rival blockchain.