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Ethereum Layer 2 Solutions Experience Surge in Activity Despite Rising Mainnet Fees

ethereum layer 2 solutions experience surge in activity despite rising mainnet fees 1

Since Ethereum switched to Proof of Stake, the network has redirected its attention to second layer solutions that offer similar ecosystems at much cheaper costs . Positive outcomes came from this strategic move, which also significantly increased activity on Layer 2 .

Soaring Costs for Ethereum Layer 2s

In May crypto enthusiasts witnessed a significant cost spike for Ethereum Layer 2s with fees for publishing data and security proofs on the Ethereum mainnet reaching an all-time high of 9,000 ETH (approximately $16 .2 million) . According to data compiled by TheBlock, this represents a five times increase in fees compared to January .

Arbitrum and zkSy2nc Era Lead the Way

Among the Layer 2 solutions Arbitrum emerges as the largest contributor to mainnet posting fees by spending 4,260 ETH (around $7 .6 million) . Hot on its heels, the zkSync Era network spent 2,250 ETH (equivalent to $4 million) and surpassed Optimism in terms of Total Value Locked (TVL) for the first time .

ethereum layer 2 solutions experience surge in activity despite rising mainnet fees 2

Rising Fees Amidst Ethereum Mainnet Transactions

The surge in data fees is attributed to the overall increase in transaction fees on the Ethereum mainnet during the month . Rebecca Stevens who is a research analyst at The Block, marked the impact of rising gas costs and stated that publishing data has become more expensive for Layer 2 networks .

Contrasting Layer 2 Fees

Despite the rise in fees, costs on Layer 2 networks remain significantly lower than on the Ethereum mainnet . Networks like Arbitrum offer fees that are more than 10 times lower than those on Ethereum . Meanwhile zkSync Era continues its upward trajectory with a 17% increase in TVL and attracts notable DeFi protocols such as the recent addition of 1inch .

In the face of rising fees, Ethereum’s Layer 2 solutions maintain their appeal by offering affordable alternatives to users and developers alike . The growth and adoption of these second layer ecosystems signify a promising future for Ethereum’s scalability and the wider blockchain ecosystem .

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