The average cost of transacting on Ethereum Mainnet has fallen by over 70% in the past two years.

A significant driver of this has been upgrades to Ethereum, along with activity moving to Layer 2 solutions, which reduced congestion. This makes transacting on mainnet more affordable.

Why is this such a big deal?
1. Layer 2 scaling solutions introduce additional trust assumptions because many rely on centralized sequencers or operators to process transactions, making them less decentralized than Ethereum. Holding funds on these chains, therefore, carries more risk compared to holding cryptocurrency on the Ethereum Mainnet.
2. Transacting in DeFi is now more affordable for the mainstream, making it easier to transact directly on the Ethereum chain. This is important as bridging funds between scaling solutions is difficult and makes using crypto a more fragmented experience. Lower mainnet fees can reduce the need to move assets across different chains.

What’s still missing?
Applications that solve real problems. The unfortunate reality is that the economics of the crypto industry often reward quick gains through token launches rather than solving problems.

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