Ethereum fees on Layer 2 chains have experienced a massive drop following the general reduction of transaction fees on the Ethereum network.
According to Gasprice.io, Ethereum users now make large transactions of ETH with as low as $0.1 transaction fees.
As highlighted by Gasprice.io, ZKSync allows ETH transactions for less than $0.1, while swaps cost about $0.16 each. The average cost of moving ETH on other Layer chains now stands around $0.5.
A Web3 investor, Evan Van Ness, who shared the information with the Ethereum community some hours ago, said this is expected to keep getting better.
Evan Van Ness tweeted, “Right now is an excellent time to move to layer2 Ethereum. And it will only get better over the next ~12 hours.”
Right now is an excellent time to move to layer2 Ethereum.
And it will only get better over the next ~12 hours. pic.twitter.com/7D31NzaOGs
— Evan Van Ness 🐬 (@evan_van_ness) March 5, 2022
A Drop in Network Activity on Ethereum Network?
At the moment, Ethereum allows sending funds for 12 Gwei on the main network. Such a drop in transaction fees can be attributed to a decrease in network activity.
It’s widely known that users on the Ethereum network had to pay high fees to initiate transactions on the blockchain due to unavoidable congestions.
The major cause of the massive surge in transaction fees on the Ethereum network were non-fungible tokens (NFTs) and decentralized finance (DeFi) sectors. Now that the popular sectors are experiencing a massive loss in volume due to the recent unfavorable price trends, congestion on the Ethereum network has decreased.
Going by the data provided by decentralized tracking services, such as DappRadar and DeFiLIama, the arguably largest Ethereum-based NFT marketplace, OpenSea, is facing a relatively 50% decline in trading volume following issues related to security.