Galaxy Research: ETH Dencun Upgrade Leads to Increased Failure Rate in High-Frequency Trading

According to a tweet by Galaxy researcher Christine Kim, the Dencun upgrade in March brought unexpected consequences for Ethereum, leading to an increase in transaction failure rates on Layer 2 networks. She cited a detailed analysis report titled "150 Days After Dencun" released by cryptocurrency investment company Galaxy on August 21. The report stated that since the upgrade, there has been a significant increase in failed transactions and bot activity on Layer 2, thereby reducing costs. The report pointed out that after EIP-4844 was activated, Ethereum L2's daily transaction activity more than doubled within the subsequent 150 days, reaching 6.65 million transactions. However, the increase in transaction volume also led to an increase in transaction failure rates. Kim observed that these failures could be due to bot activities caused by low L2 fees. Base had a high failure rate of up to 21%, Arbitrum had a failure rate of up to 15.4%, and OP Mainnet had a failure rate of up to10 .4%.