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Ethereum’s Dencun Upgrade Linked to Rising Transaction Failures on Layer-2 Networks

Ethereum, Dencun Upgrade

Recent research suggests that Ethereum’s Dencun update in March unintentionally caused transaction failures across layer-2 networks to increase.

In an Aug. 22 article on X, Galaxy researcher Christine Kim noted that mid-March Ethereum Dencun upgrade implementation has resulted in more failed transactions on layer-2 networks. This result was not the anticipated result of the improvement meant to save costs.

Published on Aug. 21, Galaxy’s paper “150 Days After Dencun” highlighted the study, which showed that while the upgrade has greatly increased transaction activity, it has also caused increase in failure rates. Kim pointed out that the failures are mostly related to the increase in bot activity, perhaps driven by reduced fees on these networks.

Especially impacted have been Base, Arbitrum, and OP Mainnet. The research shows Base had failure rates as high as 21%, Arbitrum reached up to 15.4%, and OP Mainnet had rates up to 10.4%. High-activity addresses—especially those doing 100 or more daily transactions—made up a significant share of these failures.

With a maximum of 4% across all seen networks, less active addresses did, however, have considerably reduced failure rates.

Not only are Ethereum’s layer-2 networks having similar problems. Separate Coinbase reports on Aug. 13 revealed that Solana also suffers from a high number of transaction failures; 25% to 45% of non- Vote transaction fees are wasted on unsuccessful transactions.

Through EIP-4844, the March 13 Ethereum patch included data blobs—also known as proto-danksharding. Designed to ease load on the execution layer, this function provided temporary data storage space for roll-up data, but it has also had unanticipated results.

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