Stay Informed: Ethereum and Solana Facing Increased Transaction Failures
Recent upgrades in the Ethereum network brought unforeseen challenges, impacting the functionality and efficiency of Layer 2 networks. Here’s what you need to know:
Challenges for Ethereum’s Layer 2 Networks
Research conducted by Christine Kim from Galaxy revealed concerning trends following the Dencun upgrade:
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Increase in Daily Transactions:
- Within 150 days after the activation of EIP-4844, Ethereum Layer 2 networks experienced a significant surge in daily transactions.
- The daily transactions more than doubled, reaching 6.65 million, indicating increased network activity.
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Rise in Transaction Failures:
- Despite the spike in transaction volume, there has also been a noticeable increase in failed transactions.
- This rise in failures is largely attributed to bot activity attracted by reduced fees on Layer 2 networks.
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Impact on Different Networks:
- Networks like Arbitrum, Base, and OP Mainnet saw their failure rates escalate post-Dencun.
- The proportion of failed transactions on Base rose to 21%, Arbitrum to 15.4%, and OP Mainnet to 10.4% within 150 days after the upgrade.
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Bot Activity Dynamics:
- Most failed transactions are associated with highly active addresses, indicating potential bot interference due to reduced fees.
- On the contrary, low-activity addresses with minimal daily transactions experienced lower failure rates across all networks.
- Rollup Transaction Costs:
- The reduction in rollup transaction costs may have incentivized bot activity, leading to increased failure rates among high-activity addresses, posing challenges for network efficiency.
Solana Also Struggling with Transaction Failures
Transaction failures are not exclusive to Layer 2 networks, as even prominent Layer 1 networks like Solana are facing similar woes:
- High Failure Rates:
- According to Coinbase’s recent report, a significant portion of Solana’s non-vote transaction fees – between 25% and 45% – are allocated to failed transactions.
- This trend highlights the prevalence of transaction failures across various blockchain networks, impacting user experience and network reliability.
Hot Take: Stay Updated on Transaction Trends
As the crypto landscape evolves, staying informed about transaction failures and network challenges is crucial to understanding the current state of blockchain technology and its impact on user interactions. Keep an eye on emerging trends and developments to navigate the complexities of blockchain transactions effectively.
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