The launch of Ethereum’s EIP-4844 (proto-danksharding) significantly reduced transaction costs on Layer 2s by introducing blobs for cheaper data availability. Post-upgrade data shows L2 gas fees dropped by over 80% on average, with Arbitrum and Optimism seeing the most impact. This cost reduction led to a measurable spike in daily active users and contract interactions across major L2s. Lower fees enhanced affordability for microtransactions and boosted user retention. However, long-term sustainability will depend on continued blob space efficiency and whether app demand scales with cheaper throughput.

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