Cryptocurrency investors know that Ethereum is not only known for being the 2nd largest crypto but also for its massive fees. This has been a significant problem in the widescale adoption of cryptocurrency despite its immense popularity. Therefore, one of the prime focuses of the project is to bring these costs down. One of the ways this is happening is the L2 solutions built on top of ETH. And Vitalik says ETH Layer-2 fees should become lower (around 5 cents) to be acceptable.
Vitalik’s reply to L2 solution fees
The statement around the low fees of L2 solutions was made by Vitalik in reply to Ryan Sean Adam’s tweet. Ryan posted about the gas fees required to bridge tokens to the ETH network for a list of L2 protocols. While the cost of the transactions on these protocols was much lesser than ETH, it went to a max of 85 cents on Arbitrum One.
Needs to get under $0.05 to be truly acceptable imo. But we're definitely making great progress, and even proto-danksharding may be enough to get us there for a while!
— vitalik.eth (@VitalikButerin) May 3, 2022
Ethereum gas fees are very high, so users have to use the L2 option if they want sustainability. These L2 protocols work side by side with the mainnet and have become a preferred medium due to the surge of demand in block space on the ETH mainnet. While Ryan believes that the price for these protocols is low enough, Buterin feels it should be even lower. However, I assume we can agree that even at this price, this is much more affordable than ETH.
Ethereum fees might soon get lower
The project often sees a high spike in fees when there is high demand, and the network becomes congested. This has often led to fees that can be even near the $100 mark. However, the team has been working to make the project more efficient and scalable, which can help bring down the gas fees. The shift to the proof of stake consensus from the proof of work model is also expected to help the project. There has been a little delay in the same, but it’s not very far away.
What are your thoughts as Vitalik says ETH Layer-2 fees should become lower even though it’s below the $1 mark? And do you think that he should instead focus on bringing down the gas fees for ETH? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Weiss Ratings call out the risks of crypto-backed loans.
