Ethereum Layer 2 Fees Drop From $0.31 to $0.0005 (Here’s What That Means for Web3)
TL;DR
Fees just dropped to below a penny on Ethereum L2’s, which will (hopefully) inspire more people to adopt and innovate upon the Ethereum blockchain.
Full Story
On Wednesday, the Ethereum mainnet was upgraded — and so far, it's looking like it was a mighty success!
Which makes us think this upgrade could be a huge catalyst for Web3 mass adoption.
Hear us out:
The Dencun upgrade allowed for Layer 2’s (aka L2’s, aka faster n’ cheaper blockchains built on top of the Ethereum network) to move data more efficiently, and in turn lower their costs/increase their speed even more.
Now — not all L2’s had the tech to take advantage of this upgrade yet, but those that did have already been fist bumping about their successes.
For example:
Fees on the ‘Base’ L2 dropped from $0.31 to $0.0005, after the upgrade.
And lower prices open the flood gate for innovation.
Think of it like this: If the Ethereum mainnet is an iPhone, the layer 2’s are the apps you download.
When it became easy/cheap to create, upload and install apps — two things happened:
More people started making apps and sharing their ideas.
More people purchased iPhones to use said apps (onboarding them into the Apple ecosystem in the process).
So with fees dropping to below the cost of a penny, more people will opt to test and innovate on Ethereum.
And as the tech becomes more streamlined, more people can come to play.
Very cool!