Dencun Upgrade Impact On Arbitrum

    The Dencun Upgrade was successfully implemented on March 13th, 2024, at block number 269568 on the Ethereum mainnet. This pivotal update marks a significant juncture in Ethereum's development, introducing a suite of enhancements designed to bolster the network's scalability, security, and overall user experience. Central to this upgrade is the introduction of "proto-danksharding" via Ethereum Improvement Proposal (EIP) - 4844, a feature that substantially diminishes the transaction costs associated with Layer 2 solutions. This analytical dashboard is dedicated to assessing the impact of the Dencun Upgrade on the Arbitrum Chain.

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    Three Phases

    The subsequent analysis is segmented into three distinct phases:

    • Pre-Dencun: This phase encompasses the period prior to the upgrade, up until 13:55:59 UTC on March 13th, 2024.
    • Dencun Not Active on Arbitrum: This intermediate phase spans from just after the upgrade until the first blob was submitted from Arbitrum, extending from 13:55:59 UTC on March 13th, 2024, to 14:50 UTC on March 14th, 2024.
    • Dencun Active on Arbitrum: This phase begins after the initial blob submission and continues onward, starting at 14:50 UTC on March 14th, 2024.
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    Hourly Transactions Comparison
    • Following the Dencun Upgrade, hourly transaction count on L2 (i.e., Arbitrum) increased by 43.38%. This surge is attributed to the reduced gas fees on the L2, which has drawn users to conduct more transactions on L2.

    • Concurrently, the number of hourly transactions settled from L2 (Arbitrum) to L1 (Ethereum), decreased by 81.5%. This reduction is due to the Dencun Upgrade's introduction of additional data storage in the form of data blobs, which alleviated block congestion. As a result, a single transaction on L1 can now settle a higher volume of L2 transactions, thereby reducing the overall number of L1 transactions.