- Ethereum co-founder Vitalik Buterin believes only $0.05 or lower transaction fees are acceptable in crypto.
- The only layer-2 platform that meets Buterin’s transaction fees preference is Metis Network.
- Analysts believe ETH price could rebound by 40%, revealing a bullish outlook on the altcoin.
Despite Ethereum layer-1 transaction fees dropping to $3.26 per transaction, Vitalik Buterin believes the desired fee is $0.05 or cheaper to become acceptable.
Buterin wants Ethereum fees below $0.05
Transaction fees on Ethereum layer-1 have plummeted to $3.26. Still, co-founder Vitalik Buterin wants to see fees below $0.05 for ETH to achieve mainstream adoption and become the world’s computer.
Buterin told Ryan Sean Adams, the host of the Bankless Podcast, that Ether’s transaction fees don’t meet his desired target. The Ethereum co-founder believes all transactions need to be under $0.05 to be truly acceptable.
The only layer-2 solution that meets Buterin’s requirement is Metis Network. The decentralized economy platform’s fee is $0.02, but a token swap costs $0.14. Competitors like Loopring charge $0.12 per transaction, while Aztec Network, an open-source layer-2 protocol, charges $1.98.
Interestingly, the minting of NFTs on the Ethereum blockchain has increased activity on the network and resulted in higher transaction fees. The cost of Yuga Lab’s NFT transactions could hit as high as $14,000 per mint.
Buterin’s vision for the Ethereum network is affordable fees and higher utility, as he describes ETH as “the internet of money.”
Buterin was quoted:
Needs to get under $0.05 to be truly acceptable imo. But we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while!
The Ethereum co-founder set this target in 2017 when he mentioned that low transaction costs (below $0.05 per transaction) are the motivation behind the development for scaling the network. It continues to remain the goal for the Ethereum network, and Buterin stands behind it.
He recently proposed an upgrade to increase downward pressure on ETH transaction fees, EIP-4844. This EIP incorporates the critical elements of danksharding, simplifying previous sharding designs and can be implemented without the initiation of previous sharding upgrades.
The Ethereum network could scale significantly in a short period of time. This would reduce congestion and lower gas fees. A reduction in gas fees could lure developers and traders to the Ethereum network and increase demand for ETH, fueling a bullish sentiment among holders.
FXStreet analyst have evaluated the Ethereum price trend and noted that it is converging in an ascending parallel channel. It is expected the Ethereum price will enter a 40% upswing following the recent retest of the lower end of the demand zone at $2,800.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.