Ethereum Layer-2s Achieve Record High Transactions Per Second
Following the Dencun Upgrade, gas fees on Ethereum Layer-2s have been reduced by 99%. The recent implementation of blobs (Binary Large Objects) through EIP-4844 has optimized data availability and significantly decreased transaction costs across various Layer-2s. Notably, OP Mainnet (Optimism), Base, Arbitrum, Zora, and zkSync have experienced substantial reductions in gas fees for different types of transactions, including swaps and transfers.
According to data from GasFees.io, transferring ETH on Base now averages $0.0011, while token swaps cost $0.0049. On Arbitrum, fees stand at $0.0085 and $0.0021 respectively, while Zora’s fees are $0.0058 and $0.0026, and OP Mainnet’s fees are $0.0046 and $0.0508.
The reduced gas fees, coupled with the recent surge in Memecoin trading, have fueled the activity of these Ethereum Layer-2s, resulting in all-time high transaction counts. Consensys’s ETH Layer-2 zkEVM rollup Linea has experienced a remarkable 678% increase, while Coinbase’s Base has seen a growth of 605% over the past month, as reported by growthepie.xyz. Asset manager VanEck even predicts that Ethereum Layer-2s will reach a trillion-dollar valuation by 2030.
However, Ethereum is not without its critics. OG Trader Peter Brandt has pointed out flaws in its functionality and labeled ETH as a “junk coin.” Additionally, the Solana community Superteam DAO released a promotional video criticizing Ethereum and mocking ETH maximalists and developers. They suggested migrating and building on Solana instead, despite its own flaws.
Another concern surrounding Ethereum is the potential loss of value accrual due to the increasing “L2 fragmentation.” Pseudonymous crypto whale “@0xSisyphus” compared this situation to that of ATOM, the native token of Cosmos chains, and DOT, the token of Polkadot. However, popular ETH educator advocates for the rise of a modular Ethereum era powered by ETH.
Despite these challenges, Ether (ETH) continues to hover around the $3.2K range, with a 2.4% drop in the last 24 hours. Notably, nearly $4 billion worth of ETH was withdrawn from crypto exchanges in Q1 2023, suggesting a bullish outlook. Meanwhile, the classification of ETH and the pending SEC decision on spot Ethereum ETFs continue to generate anticipation and speculation within the crypto community.