Ethereum continues to evolve towards scaling through second-layer solutions, changing market dynamics of cryptocurrencies. Recent data shows record low fees on the network.
Ethereum's Approach to Scaling via L2 Solutions
Ethereum has focused its efforts on scaling through multiple second-layer networks, each with its own transaction processing parameters. According to Anurag Arjun, a co-founder of Avail, this approach allows for an unlimited number of unique high-throughput chains.
Arjun believes that the rollup-centric architecture provides opportunities for different teams to experiment with various execution environments and block times.
"The beauty of this architecture is that it allows a diverse set of high-throughput sidechains to appear rather than just one singular architecture on monolithic L1s."
Falling Fees on Ethereum's Main Network
In April 2025, fees on the main Ethereum network dropped to five-year lows, averaging around $0.16. Brian Quinlivan, the marketing director for Santiment Analytics, pointed out that this drop signals decreased demand for the base layer and waning investor interest in Ethereum.
"This large reduction in fees coincides with fewer people sending ETH and interacting with smart contracts," Quinlivan noted in his blog.
Criticism and Future Prospects
Ethereum's approach to scaling through L2 solutions has faced criticism, with some arguing that it leads to liquidity siloing, which ultimately contributes to the base layer's corrosion. Critics also associate low fees with a decline in interest in Ether, which negatively impacts its market value.
Thus, Ethereum continues to seek ways for scaling and fee reduction, but numerous discussions arise around the effectiveness of these solutions and their impact on the market.
