Yesterday’s Dencun upgrade on Ethereum appears to have fulfilled its promise of reducing transaction costs on Layer 2s.

Major Layer 2 chains that implemented EIP-4844 have seen their average transaction fees drop dramatically.

For the uninitiated, the upgrade provided Layer 2s with a new transaction type called blobs. These blobs serve as a new point of location for the chains when posting information on Ethereum, instead of the traditional “calldata” method, offering a direct path to fee reduction.

Data from Layer 2s, such as in the Optimism ecosystem, including OP Mainnet, Base, and Zora, as well as others like zkSync and Starknet, all indicate a drop in transaction fees of several folds.

For example, the median gas fees on Base have fallen from around $0.5 on March 13 (right before …