Ethereum’s daily transaction fees have dropped to their lowest point in eight months, reaching 1,719 ETH ($2.8 million) on Sunday. This represents a significant decline from the year-to-date high of 16,720 ETH observed on May 5.
The decrease in fees indicates lower network usage, with fees being determined by the level of activity and number of pending transactions on the Ethereum network. One possible explanation for this decline is the growing popularity of Ethereum’s layer 2 scaling solutions, such as Friend.tech, built on Coinbase’s L2 chain.
These solutions help to alleviate congestion and reduce transaction costs on the main Ethereum network. The success of Friend.tech, which amassed over 100,000 users and generated more than $25 million in revenue within two weeks, highlights the positive impact of scalability solutions.
The utilization of layer 2 scaling solutions has contributed to the reduction in transaction fees, offering a promising outlook for Ethereum’s future scalability and user experience.
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