The Ethereum Layer-two platforms have an average gas cost of $40, which might be the reason they are experiencing a surge in usage.
Recent months have seen a surge in adoption of layer-two scaling protocols for Ethereum as gas pricing keep rising. According to recent findings, the layer-two sphere processes more daily transactions than what is seen on the Bitcoin network.
As per the data collated by Week in Ethereum News founder and crypto analyst, Evan Van Ness, this past Monday saw more transactions on Ethereum Layer-twos than the Bitcoin Network. In a series of tweets, Van Ness referenced CoinMetrics as the source of this data with layer two protocols processing approximately 250,000 transactions on Monday. On the same day, Bitcoin transactions were approximately 210,000.
There are already more daily transactions on Ethereum's layer2 (~250k) than on Bitcoin (~210k yesterday per @coinmetrics) $ETH layer2 is just getting started
— Evan Van Ness 🐬 (@evan_van_ness) September 6, 2021
Van Ness further revealed how StarkWare was the leading processing platform for this period with approximately 143,000 transactions divided among several decentralized finance (DeFi) platforms like the dYdX exchange and Immutable X, a layer-two nonfungible token (NFT) platform.
Days after launching its mainnet on Wednesday, Arbitrum had approximately 56,000 transactions. Their most recent launch, Arbitrum One platform, already has big DeFi names seeking its services such as Uniswap, Chainlink, and Aave. Uniswap is seeking several layer-two options.
The @Uniswap community has spoken with overwhelming support in favor of an Arbitrum deployment of Uniswap v3! So far:
0 UNI https://t.co/esdxa2HIIC
— hayden.eth 🦄 (@haydenzadams) May 26, 2021
According to Van Ness, on the same Monday, Optimistic Ethereum had around 28,000 transactions. In July, Uniswap deployed its v3 protocol on Optimism. The project also powers a layer-two version of the Synthetix/Kweta DeFi trading platform.
The researcher claimed that the rest of the transactions were divided among other crypto projects, with Loopring, a decentralized exchange, taking the largest share.
Bitcoin enthusiasts claimed that Van Ness made a somewhat unfair comparison between Ethereum layer-twos with Bitcoin’s Layer-one but left out information on Bitcoin’s Layer-two Lightning Network. To this, his response was that “my impression, given the low amount locked, is that Lightning has very little traction but I’m happy if someone shows me data to the contrary.”
Sanket, the strategy lead at Polygon (an Ethereum layer-two tech aggregator), had to break down some of the network statistics to help people understand the metrics. Through his tweets on Tuesday, one is able to deduce that the smaller transactions were dominant. One of his tweets stated that “45% of all addresses, across all of their transactions that day, were less than $1.45.”
@0xPolygon network level stats
🦈~45% of all transactions are transferring less than $1.45
💥~65% of all transactions are transferring less than $100 USD
🎯~85% of all transactions are transferring less than $1k
🐋🐋 the top transaction moved ~$142mn
credits: @RaphaelSignal pic.twitter.com/qSkqcBZj2x
— sourcex.nft 💜 (@sourcex44) September 6, 2021
L2 Fees insists that as it stands, Loopring is the most cost-effective platform for users wishing to transfer Ether (ETH) with a cost of $0.40. The cost at Optimist stands at $5.83, Arbitrum One $2.75, and at Matter Labs’ zkSynch the cost is $0.83.
For a simple ETH transfer, Ether costs $11 and the average gas costs for all transaction types is approximately $40.
Image courtesy of pixabay
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