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?
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