Ethereum
Ethereum fees fall to seven-month low as L2 competition heats up
Transaction fees on the Ethereum network recently fell to a seven-month low, hitting $1.7 per transaction on May 12.
The average transaction fees on the Ethereum The network fell to the lowest level in seven months as Layer 2 networks became more attractive for frequent transfers. According to data According to BitInfoCharts, Ethereum’s average transaction fees fell to $1.7 on May 12, a level last seen in October 2023, when the ETH price was below the 2,000 mark. $.
With Ethereum’s Dencun upgrade, fees have also decreased significantly on higher layer 2 networks, making them more attractive for everyday use. According to Statistics As of L2Fees, token swap operations on major Layer 2 networks now cost less than $0.5, a substantial difference from Ethereum’s mainnet, where users would have to pay over $4 to exchange a token. token against another.
Meanwhile, Vitalik Buterin, co-founder of Ethereum, propose address the limitations of the existing commission system through multidimensional gas pricing. Ethereum uses a peer-to-peer model in which all computing processes, including storage, data transfer, and encryption operations, are measured in a single metric called “gas.”
Buterin says the current approach leads to inefficient use of computing power and can result in dangerous blocks being included in the blockchain. Proposing a move to a multidimensional gas model, it suggests that this approach could better reflect the true constraints and capacities of the network, potentially improving capacity without compromising resource fungibility.