Vitalik Buterin Wants ETH Layer-2 Transactions Costs Lower Than $0.05

  • The recently-delayed merge to Proof-of-Stake will permit sharding. 
  • Otherdeeds non-fungible token buyers paid over 60,000 ETH ($165 million) fees.

To be “truly acceptable,” Ethereum (ETH) co-founder Vitalik Buterin thinks transaction costs for Layer-2 transactions should be lower than $0.05. Buterin’s new remarks were in reaction to a tweet from Bankless podcast host Ryan Sean Adams, who tweeted a snapshot showing the average transaction costs for eight Ethereum Layer-2 platforms.

Ether’s Layer-1 network is compared to the cost of Layer-2 networks constructed on top of it by L2fees.info, a website dedicated to comparing the two options.

Highly Anticipated Merger

A token swap on the Metis Network costs $0.14, which falls short of Buterin’s planned transaction fee of $0.05. After that, there was a dramatic rise in fees, with Loopring charging $0.12 for every transaction and the Aztec Network charging $1.98 per transaction.

At $3.26 each transaction and a shocking $16.31 every token swap, Ethereum’s Layer-1 is now reasonably priced. However, this is only true until Yuga Labs publishes another collection of NFTs, at which point costs might soar over $14,000 per mint.

The recently-delayed merge to Proof-of-Stake will permit sharding. Ethereum’s chain may be divided up into concurrent threads, which will let Ethereum scaling solutions quickly grow to new capacities. This is unlikely to happen for some time; hence Ethereum will continue to rely on scaling solutions (such as rollups) for the time being. That’s why Buterin came out with EIP-4488 in November. Ethereum scaling solutions are expected to benefit from EIP-4844 in the same way.

Last weekend’s $310 million Otherside metaverse NFT drop by Yuga Labs was a significant NFT drop and witnessed Ethereum’s fee issue. Otherdeeds non-fungible token buyers paid over 60,000 ETH ($165 million) fees.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.