Ethereum's Dencun Upgrade Reduces Transaction Costs on Layer 2 Solutions with Blob Mechanism

The recent Dencun upgrade on Ethereum has led to a decrease in transaction costs on layer 2 solutions such as Optimism and Base. This is due to the introduction of Binary Large Objects (blobs), which allow for the storage of large data chunks off-chain and at a lower cost than call data. Rollups like Optimism, Arbitrum, and zkSync have implemented blobs manually, leading to a significant drop in transaction fees. The blob mechanism is expected to eventually result in a 90% decrease in transaction costs on layer 2 solutions, but it has not yet boosted investor interest in the native tokens of rollups.