Surge in L2 competition leads to seven-month low in Ethereum fees
Transaction fees on the Ethereum network have reached a seven-month low, dropping to $1.7 per transaction on May 12. This decrease is largely due to the growing popularity of layer-2 networks for frequent transfers. According to data from BitInfoCharts, the average transaction fee on Ethereum dropped to $1.7, a level not seen since October 2023 when the price of ETH was below $2,000.
The recent Dencun upgrade on Ethereum has also contributed to the decrease in fees on layer 2 networks, making them more appealing for everyday usage. L2Fees statistics show that token swaps on main layer-2 networks now cost less than $0.5, a significant difference compared to Ethereum’s mainnet where users would have to pay over $4 for the same transaction.
In the midst of these developments, Ethereum co-founder Vitalik Buterin has proposed addressing the limitations of the existing commission system through multidimensional gas pricing. Currently, Ethereum measures all computing processes using a single metric called “gas,” which Buterin believes leads to inefficient use of computing power and potentially unsafe blocks in the blockchain. By shifting to a multidimensional gas model, Buterin suggests that the network’s true constraints and capabilities can be better reflected, potentially increasing capacity without compromising resource fungibility.
Overall, these changes in transaction fees and proposed upgrades signal a positive direction for the Ethereum network, making it more accessible and efficient for users.
