"Gas fees cut by 90%"...Ethereum Layer 2 Declares End to Fee Wars

▲ Ethereum (ETH)

The nightmare of Ethereum gas fees, where one had to pay a $42 fee to transfer assets worth $30, is coming to an end with the proliferation of Layer 2 technology.

Crypto-specialized YouTube channel CoinView, in a video released on May 8 (local time), highlighted the current state of Layer 2 solutions designed to solve Ethereum's chronic gas fee problem. CoinView explained that high fees on the Ethereum mainnet are not due to network flaws but rather from users' bidding competition to occupy limited block space.

Ethereum has reduced Layer 2 fees by more than 90% compared to the past, undergoing the Dencun upgrade in 2024 and the Pectra upgrade in May 2025. Currently, 95% of Ethereum ecosystem activity occurs in the Layer 2 environment, and the mainnet is being restructured to focus on its role as the final settlement layer.

The Layer 2 market is dominated by Base, Arbitrum, and Optimism. Base, built by Coinbase, processes up to 10 million transactions per day, establishing itself as the easiest entry point for general users. Arbitrum has solidified its position as a chain for professional investors, leveraging its long operational history, hundreds of applications, and abundant liquidity. Optimism is expanding an operating system-like ecosystem where multiple chains work together based on its own framework.

Security is the most crucial criterion when moving assets to Layer 2. CoinView pointed out that using exchange withdrawal functions is the safest method. Third-party bridges carry relatively high hacking risks; for instance, the Ronin bridge suffered a loss of $625 million in the past. The habit of directly entering and using official bridge addresses was presented as a fundamental for asset protection. It's also important to note that Layer 2 wallet addresses are the same as the mainnet, but assets are managed separately by chain.

However, challenges remain. The centralized sequencer operating structure carries the risk of temporary network outages. The Base sequencer, for example, stopped for about 33 minutes in August 2025. Even if Layer 2 offers lower costs and faster transactions than the mainnet, continuous work is needed to enhance stability and decentralization.

User convenience is rapidly improving with the spread of account abstraction technology. As smart wallets become widespread, paymaster features, where apps pay gas fees on behalf of users, will be activated. Users are getting closer to an environment where they can complete transactions with a single button, without worrying about gas fee calculations or network settings.

Ethereum is shedding its past image as a complex and expensive network and moving towards becoming an accessible financial infrastructure for everyone. The proliferation of Layer 2 technology is reducing the burden of gas fees and acting as a key driver in transforming the mainnet-centric usage structure into a public-friendly ecosystem.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*