Layer two fees

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Layer two fees on Ethereum are significantly lower than those on the main net. For instance, current layer two fees hover between $0.50 and $0.90 for solutions like Optimism and Arbitrum, compared to $8-$10 on the main net, representing a 90%-95% fee reduction 1 .

Several factors influence layer two fees, including EIPs (Ethereum Improvement Proposals) and technological upgrades like sharding. These advancements can lower fees by an order of magnitude. However, as block space demand increases, fees might rise, though they can be managed by creating additional layer twos specifically designed for lower fees 1 .

Layer twos also function as value-added resellers of layer one block space, absorbing layer one costs while adding their operational fees and gas fees to maintain their infrastructure 2 . Additionally, as the technology evolves, layer twos have achieved near-zero fees in some instances, thanks to upgrades like the Arb OS Atlas and blob space, significantly easing transaction costs across various platforms 3 4 .

Layer Two Fees and Future Outlook

Ryan and David discuss the current state of layer two fees, highlighting the significant reduction compared to layer one. They explore the factors that can lead to further fee reductions, such as EIP improvements and the implementation of sharding. However, they also acknowledge that as block space demand increases, fees may eventually rise again, but the flexibility of layer twos allows for the creation of new solutions to maintain low fees.
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The Trillion Dollar L2 Opportunity | Part One
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In summary, layer two fees are much cheaper and are expected to remain competitive, benefiting from continuous innovations and scaling solutions like EIPs and sharding. However, overall fee equilibrium will depend on the demand for block space across the layer two networks.

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