• Layer-two fees are still too expensive. Vitalik Buterin, co-founder of Ethereum

  • Ethereum co-founder Vitalik Buterin has commented on a tweet on layer-two fees, implying that many networks are still overpriced.

    Ryan Sean Adams, an Ethereum enthusiast and industry researcher, released a snapshot of the top layer-two platforms and their network fees on May 3.

    Arbitrum One had the highest fee of $0.85 to send ETH and $1.19 for a token swap, while the Metis Network had the lowest fee of $0.02 to send ETH and $0.15 for a token swap. Buterin responded to the tweet by saying:

    “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!”

    Buterin has claimed again that “the Internet of Money should not cost 5 cents per transaction,” as expressed in a 2017 interview.

    Buterin introduced Proto-Danksharding in February with EIP-4844 as a way to improve the Ethereum Consensus Layer sharding process. The upgrade enables a new type of transaction known as a “blob-carrying transaction,” which carries extra data that the Ethereum Virtual Machine cannot access (EVM).

    Ethereum costs are still prohibitively expensive.

    According to L2fees, the current cost of sending ETH on the leading layer-two networks ranges between $0.02 and $1.96, indicating that there is still some progress to be made before the average falls below what Vitalik considers acceptable.

    Nonetheless, they are all less expensive than transferring on layer-one Ethereum, which costs roughly $2.50 on average, according to Etherscan. On May 3, BitInfoCharts reported a substantially higher average transaction cost of roughly $16, indicating that Ethereum remains prohibitively expensive for everyday use (unless you’re a whale).

    On May 1, when Yuga Labs launched their latest NFT collection, average gas fees reached an all-time high of more than $200, causing even more uproar in the crypto community.

    Two layers of TVL drops

    The total value locked across all L2 networks has dropped to just over $6 billion, according to the L2beat layer-two tracker. This represents an 18% drop from the beginning of April when it was at an all-time high of $7.4 billion.

    Arbitrum leads the market with 57 percent of the TVL, which is remarkable given that it is one of the most expensive L2 networks to utilize. The dYdX exchange is second with a 16 percent market share or just under $1 billion locked up, while Optimism has a 10% market share with roughly $622 million in TVL.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0