Ethereum’s Vitalik Buterin Thinks $0.05 Transaction Fee Closer Than Ever | Cryptocurrency

  • Ethereum co-founder Vitalik Buterin believes that only $0.05 or less in transaction fees are acceptable in crypto.
  • The only Layer 2 platform that meets Buterin’s preference for transaction fees is Metis Network.
  • Analysts estimate that the price of ETH could rebound by 40%, revealing a bullish outlook on the altcoin.

Although Ethereum layer 1 transaction fees drop to $3.26 per transaction, Vitalik Buterin believes that the desired fees are $0.05 or less to become acceptable.

Buterin wants Ethereum fees below $0.05

Transaction fees on Ethereum layer-1 dropped to $3.26. Still, co-founder Vitalik Buterin wants to see fees below $0.05 for ETH to achieve widespread adoption and become the computer of the world.

Buterin told Ryan Sean Adams, the host of the Bankless podcast, that Ether’s transaction fees were not achieving the desired goal. The Ethereum co-founder believes that all transactions must be below $0.05 to be truly acceptable.

The only Layer 2 solution that meets Buterin’s requirements is Metis Network. The fee for the decentralized economy platform is $0.02, but a token exchange 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. Yuga Lab’s NFT transaction cost could be 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:

Must be less than $0.05 to be really acceptable imo. But we’re definitely making great strides, and even proto-danksharding may be enough to get us there for a while!

The Ethereum co-founder set this goal in 2017 when he mentioned that low transaction costs (below $0.05 per transaction) are the motivation behind the development of network scaling. This remains the goal of the Ethereum network, and Buterin supports 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 partitioning designs, and can be implemented without initiating previous partitioning upgrades.

The Ethereum network could scale significantly in a short time. This would reduce congestion and reduce gas charges. A reduction in gas fees could attract developers and traders to the Ethereum network and increase demand for ETH, fueling bullish sentiment among holders.

The Netcost-Security analyst assessed Ethereum’s price trend and noted that it is converging into an ascending parallel channel. Ethereum price is expected to enter a 40% rally after the recent retest of the lower end of the demand zone at $2,800.

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Ethereum’s Vitalik Buterin Thinks $0.05 Transaction Fee Closer Than Ever | Cryptocurrency

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