In a welcome break from past delays, the Ethereum Foundation delivered the DenCun upgrade on time in Q1 2024. This critical update lives up to its promise by significantly reducing transaction costs for users of layer-2 scaling solutions. Popular layer-2 solutions like Arbitrum, Optimism, Base, zkSync, and Zora have all seen transaction fees plummet to mere pennies per transaction ^[1]. This translates to a vastly improved user experience for anyone interacting with dApps built on these layer-2 solutions. As a result, Ethereum dApps could become significantly more accessible to a wider audience.

While Layer-2 solutions offer significant benefits, there are ongoing discussions about potential trade-offs in decentralization and security ^[2]. Despite these considerations, I believe Dencun is a positive step for the long-term health of the Ethereum ecosystem. In fact, I often choose Optimism for my ETH transfers due to its advantages, but it's important to acknowledge these potential limitations.

• Despite the Dencun upgrade's potential to directly benefit users by reducing transaction costs on layer-2 solutions, the prices of their native tokens (like ARB and OP) haven't shown a significant increase. This could be due to two factors: either the market already anticipated the positive impact of Dencun and priced it in before the upgrade, or investors are still cautious and favoring ETH itself.
• High Ethereum Layer-1 fees haven't deterred users completely. While Layer-2 solutions offer significantly lower fees (often 1000x lower) ^[3], trading volume on Ethereum remains high. Coinmarketcap data shows that Ethereum's daily volume ~3.15B USD dwarfs Layer-2 solutions like Arbitrum ~ 1.1B USD, Optimism ~128M USD, and Base ~155M USD ^[4]. This suggests that transaction fees are just one factor users consider when choosing a platform. Security, established network effects, and user familiarity with Ethereum may also be important.

I myself will continue to prioritize using Layer-2 while waiting for new scaling solutions for Ethereum Layer-1 in the future.

I want to know your opinion on Ethereum Layer-2:

• Are you using Ethereum Layer-2? Which one?
• Do you trust Ethereum Layer-2 solutions?
• Would you choose to invest in Layer-2 native tokens such as ARB and OP instead of ETH?

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References:
[1] Layer 2 Blockchains Become Cheaper After Ethereum's Dencun Upgrade
[2] Debating Dencun: Will Ethereum's Big Update Help or Harm the Network?
[3] Optimism Mainnet - L2 Gas Price Tracker
[4] Coinmarketcap: Top Cryptocurrency Decentralized Exchanges