Total daily transaction fees on Ethereum dropped to 1,719 ETH ($2.8 million) on Sunday, the lowest one-day total since Dec. 26, according to data tracked by South Korea-based blockchain analytics firm CryptoQuant. Down 89% from the May 5 high of 16,720 ETH.
reduction of fees Means lower network usage. This is because the fees are determined by the level of activity on the network. This is mostly the number of pending transactions.
However, this eight-month low fee may be due to the growing popularity of Ethereum’s layer 2 scaling solutions, which is a long-term positive development for Ethereum.
“Ethereum L1 fees since friends.tech launched on August 10 have been 25% lower than the average of the previous year, in stark contrast to the times when early NFT applications like CryptoKitties or Yuga Labs NFT releases often cause temporary blockages to the Ethereum network,” said David Lawant, head of research at FalconX.
“From a broader perspective It is a pleasure to see successful applications not disrupting the blockchain network. This, of course, comes from the development of Ethereum’s L2 scalability solution, which Friends.tech is built on Base, Coinbase’s L2 chain based on the Optimism stack,” added Lawant.
According to data tracked by analytics firm IntoTheBlock, the number of daily transactions on Optimism Mainnet hit a new all-time high of nearly 900,000 on August 15th. It was the second in history earlier this month.
“As the competition between L2 increases, it is clear that Ethereum is also benefiting,” IntoTheBlock said.
refer : coindesk
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