Ethereum co-founder Vitalik Buterin has responded to a tweet regarding layer-two fees suggesting that many of the networks are still too expensive.

On May 3, Ethereum advocate and industry analyst Ryan Sean Adams posted a screenshot of the leading layer-two platforms and their respective network fees.

The highest was Arbitrum One at $0.85 to send ETH and $1.19 for a token swap, while the lowest was the Metis Network at $0.02 to send ETH and $0.15 for a token swap. Buterin replied to the tweet stating:

“Needs to get under $0.05 to be truly acceptable imo. But we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while!”

Buterin has reiterated his views that “the Internet of Money should not cost 5 cents per transaction,” as stated in an interview in 2017.

Needs to get under $0.05 to be truly acceptable imo. But we're definitely making great progress, and even proto-danksharding may be enough to get us there for a while!

Proto-Danksharding was introduced by Buterin in February with EIP-4844 as a means to improve the Ethereum Consensus Layer sharding mechanism. The upgrade enables a new type of transaction called a “blob-carrying transaction” that carries extra data not accessed by the Ethereum Virtual Machine (EVM).

According to L2fees, the current cost of sending ETH on the leading layer-two networks is between $0.02 and $1.96 so there is still some way to go before the average comes down to what Vitalik thinks is acceptable.

That said, they are still all cheaper than sending on layer-one Ethereum which currently costs around $2.50 on average according to Etherscan. BitInfoCharts reported a much higher average transaction fee of around $16 on May 3 so Ethereum is still too expensive for everyday usage (unless you’re a whale).

Average gas fees spiked to an all-time high of over $200 on May 1 when Yuga Labs launched its latest NFT collection, sparking more outrage from the crypto community.  

According to the L2beat layer-two tracker, the total value locked across all L2 networks has fallen to just over $6 billion. This marks an 18% retreat since the beginning of April when it was at an all-time high of $7.4 billion.

Arbitrum is the market leader with 57% of that TVL which is somewhat surprising since it is one of the most expensive L2 networks to use. The dYdX exchange is in second place with a 16% market share or just under $1 billion locked up while Optimism has 10% of the market with around $622 million in TVL.

The post Layer-two Fees Still Too Expensive According to Ethereum Co-Founder Vitalik Buterin appeared first on BeInCrypto.

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