Ethereum Layer 2 Fees: Why Transaction Costs Fell 95%

The article explains why Ethereum Layer 2 transaction fees have fallen by roughly 90% to 95%. The main driver is the Dencun upgrade’s EIP-4844, which introduced cheaper temporary blob space for rollup data, replacing expensive calldata. Most major L2s moved batch posting to blobs and further reduced costs through better compression, batching, and sequencer competition. As a result, simple transfers on L2s now often cost pennies or less, while swaps remain more expensive because they use more computation and state. The piece notes the savings are not permanent or uniform: fees can rise during blob congestion, at times of high network activity, or if a rollup falls back to calldata. Looking ahead, full danksharding and further compression could lower fees further, but near-term costs may still fluctuate by chain, time of day, and app type.