Layer 2 is already getting bigger than some alternative networks
Alternative L1 networks are already generating lower fees than Ethereum’s L2 networks such as Optimism or Arbitrum. As the service shows, Optimism currently generates over $340,000 in fees, while Arbitrum reaches around $100,000.
Optimism’s throughput allows for cheaper Ethereum transactions thanks to the optimistic rollup technology that provides better scalability as they do not perform any computation. After a transaction is made on the network, the rollup proposes a new state to the mainnet, which approves the transaction.
Additionally, optimistic rollups are written to the main Ethereum chain as calldata, which further optimizes them and reduces transaction costs.
Ethereum’s scalability issues still exist in the market, although it has the lowest fees the network has seen in a long time. During network congestion, users had to pay hundreds of dollars for transactions and even more for more complex operations such as NFT mining.
Optimism and other layer 2 networks gained 15 minutes of fame during the NFT craze in the summer of 2021. For users who were unwilling to invest in NFT collections or mint any other tokens, L2 became the only way to make a day-to-day basis. Transaction of the day without paying heavy fees.
The growth in revenue already outpaced alternative networks such as Cardano and Solana, which shifted toward creating their own ecosystems rather than becoming “cheap Ethereum” alternatives.
Earlier, Vitalik Buterin stated that he sees no future in “layering” as a solution to scalability issues, as it creates additional loops for users and even some of them on Ethereum. or does away with using other networks.
For example, Cardano, Phantom and NEAR together do not generate revenue of optimism, suggesting significantly less utilization and low profitability for miners or stakeholders.