CandleFocus

L2 chains have the highest fees for the past three months as crypto market rallies

Author: Content Editor
L2 chains, which are layer two solutions built on top of Ethereum, are experiencing a surge in fees, ending the era of cheap transactions. Leading L2 chains, including Optimism and Arbitrum, have increased transaction costs, impacting end users. Even chains known for low fees, such as Base, have seen significant fee increases. The spike in fees is attributed to increased activity and demand for L2 chains, especially related to decentralized finance (DeFi) applications. Some L2 chains are also paying higher fees to Ethereum, further driving up costs. Ethereum itself is facing high gas fees, particularly for complex tasks like DEX swaps and NFT sales. The rise in fees is occurring alongside a surge in Ethereum usage and the ETH rally above $3,200. Despite the increased fees, Ethereum's recent upgrades have lowered inflation and provided a chance for the network to become deflationary or at least maintain a lower supply. However, Ethereum's scalability challenges remain, with fees quickly rising as activity increases.

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