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Vitalik Buterin advocates for cheaper Layer 2 fees

Vitalik Buterin
TL;DR Breakdown
  • Vitalik Buterin says L2 fees can be cheaper
  • The Ethereum founder is unimpressed with high L2 fees
  • Arbitrum boasts the highest TVL

Vitalik Buterin of Ethereum has bemoaned the fees charged for transactions from layer 2 scaling networks. The Ethereum co-founder replied to a tweet that mentioned several layer 2 networks and how much they charge for transactions. The list was sent out by one of the top executives of Ethereum, Ryan Sean. In the screenshot that was posted, Arbitrum was on top with the network charging users $0.85 to make Ethereum transactions, while Metis Network came last on the list with $0.02 to offset the same transaction.

Vitalik Buterin unimpressed with high fees on L2

Giving his reaction, Vitalik Buterin mentioned that networks need to configure their Ethereum transaction fees to go below $0.05. However, he noted that the market was really progressing as leveraging proto-danksharding might do the job in the meantime. According to an interview that Vitalik Buterin granted five years ago, he mentioned that networks should not charge as high as $0.5 for transactions.

Ethereum, through Vitalik Buterin, debuted the proto-danksharding in the crypto market in a February update on the network. According to the update at the time, the main aim of the update was to help increase sharding on the platform. The update also included a blob-carrying transaction update. This transaction contains more data that the Virtual Machine cannot access on the network.

Arbitrum leads L2 in TVL

With respect to fees on the layer 2 networks, the highest charged amount for sending Ethereum across scaling platforms is $1.96, while the lowest comes at a meager $0.02. This shows that the networks still have a long way to go before achieving the minimum fees suggested by Vitalik Buterin. However, these fees are minuscule compared to the amount taken to actualize a transfer of Ethereum on the main blockchain, which costs roughly $2.50 on average.

According to BitInfoCharts data on May 3, its cost of average fee for a transaction on Ethereum costs $16. The prices can be higher and would take a groan out of retail traders but might be good enough for whales. The Ethereum gas fees touched close to $200 immediately Yuga Labs announced its NFTs. This increase caused a tremendous uproar in the crypto community some days ago.

Meanwhile, the total value locked on layer 2 networks has increased to around $6 billion. According to records, it represents a massive climb down from $7.4 million, signifying a difference of 18%. Arbitrum, although one of the most expensive in the market, has a larger share of the TVL in the market, boasting 57%. dYdX comes in far behind in second place, boating a 16% in terms of TVL, which represents around $1 billion. Optimism takes the top 3 positions with a 10% share representing $622 million.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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