Vitalik Buterin assumed control of TOKEN2049 in Singapore, announcing that Ethereum’s layer-2 fees are now nearly absent.
Vitalik Buterin, the inventor of Ethereum, is renowned for his reserved and uncomfortable demeanor. However, he unexpectedly delivered his speech at Singapore 2049 in the form of a concert, during which he sang about the most recent developments and his vision for the ecosystem.
However, Vitalik did disclose some critical information, despite the enjoyment it provided. While crypto believers were fascinated, he concentrated on the influence of Ethereum’s Layer-2 networks, specifically Optimism and Arbitrum.
Vitalik underscored that transaction fees, which were previously a significant impediment to adoption, are now nearly nonexistent on Layer-2 networks, having decreased from $10 to $0.50 per transaction.
He noted that Ethereum’s petrol fees had previously reached as high as $200 during network congestion, a problem that is currently being resolved by Layer-2 solutions.
Ethereum has become more scalable and cost-effective as a result of these networks. Vitalik even remembered paying over $800 in petrol fees for a single privacy-preserving transaction in the past. This is, of course, no longer the case due to the advancements of these Layer-2 networks.
Ethereum’s transaction confirmation times have considerably improved since transitioning to a proof-of-stake network in September 2022, following the Merge, in addition to reducing fees.
Vitalik detailed how the transaction confirmation delay time has been reduced by half, with transactions now being confirmed in as little as 5 to 15 seconds.
Vitalik stated, “We must maintain our commitment to open-source and decentralization principles while also meeting the requirements of mainstream adoption.”
He encouraged the crypto community to maintain an approach that is realistic while maintaining the industry’s fundamental principles.
Vitalik also addressed the ongoing competition between Ethereum and Bitcoin, which is presently at 58% dominance.
Ethereum has remained below $2,500 for months, despite the fact that Bitcoin remains relatively stable. Net negative outflows of $581 million have occurred since the introduction of Ether. Greyscale was responsible for $2.7 billion of those outflows, according to the data.
Additionally, Ethereum’s decentralized application (DApp) activity has experienced a weekly decline of 19%. In the interim, Solana and BNB Chain, which are competing blockchains, experienced increases of 24% and 23%, respectively.
On September 17, ETH’s price also reached a critical technical level, as it was unable to surpass the 20-day EMA at $2,397.
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