👉👉👉 $ETH #DencunUpgrade attracts more L2 bots and failed txs: Galaxy Research
Ethereum's Dencun Upgrade Spurs Transaction Failures on Layer-2 Networks
Ethereum's Dencun upgrade in March, intended to reduce fees through EIP-4844, has led to unintended consequences, including a significant rise in transaction failures on layer-2 (L2) networks. Galaxy researcher Christine Kim and a detailed analysis by Galaxy highlighted these issues, noting that transaction activity more than doubled on L2 networks, reaching 6.65 million daily transactions over 150 days post-upgrade. However, this surge also increased transaction failure rates, largely attributed to bot activity driven by lower fees.
Key findings include:
1. Failure Rates by Network: Base saw failure rates up to 21%, Arbitrum up to 15.4%, and OP #mainnet up to 10.4%.
2. High-Activity Addresses: Accounts making 100+ transactions daily experienced even higher failure rates—41.6% on Base, 20.87% on Arbitrum, and 12.85% on OP mainnet.
3. Low-Activity Addresses: Those making five or fewer transactions daily had much lower failure rates, maxing at 4%.
The situation isn't unique to Ethereum, as Solana also faces high transaction failure rates, with bot activity being a common culprit. Despite these challenges, some argue that bots add liquidity and efficiency to markets, even as they drive up failure rates. The Dencun upgrade's introduction of data blobs aimed to alleviate strain on Ethereum's execution layer, but the resulting complexities highlight the challenges of such advancements.
Source - cointelegraph.com
