Ethereum transaction fees have dropped to their lowest levels since December, according to data from South Korea-based blockchain analytics firm CryptoQuant. The cost of executing transactions on the world’s largest programmable blockchain and the parent platform of the world’s second-largest cryptocurrency Ethereum (ETH) has dropped to 1,719 ETH which is valued at approximately $2.8 million. This is a significant decrease from the year-to-date high of 16,720 Ethereum reported on May 5th.Unlike Bitcoin (BTC) which uses a Proof-of-Work (PoW) consensus mechanism, Ethereum leverages a Proof-of-Stake (PoS) algorithm that uses validators instead of miners to create and verify a new block for transactions. These validators help secure the network by staking at least 32 ETH each and receive a portion of the transaction fees. The primary base fee is burned to help reduce the Ethereum circulating supply.David Lawant, head of research at FalconX, pointed out that ETH Layer-1 fees have gone down by 25% since Friends.tech launched on Base on August 10th. This milestone came on the heels of the latest development of ETH L2 swing solutions. Specifically, Friend.tech was designed on top of Coinbase Base which utilizes the Optimism Stack.Generally, L2 scaling solutions like Optimism, Arbitrum and Base are crucial to scaling Ethereum. In the process, it reduces the potential of congestion and helps keep transaction cost on the main network under control. IntoTheBlock data shows that number of daily transactions on Optimism Mainnet hit a new All-Time High (ATH) of almost 900,000 transactions on August 15th.Ethereum is currently trading at $1,645.92, having gained 0.40% in the past 24 hours per data from Marketcap. The significant decline in total daily fee is evidence of low network usage and the growing popularity of the ETH Layer-2 scaling solutions, which is a long-term positive development for the network.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	8
People	Friends.tech, David Lawant, FalconX, IntoTheBlock, Markedly
Companies	Friends.tech, Optimism, CryptoQuant, FalconX, Coinbase
Currencies	optimism, friends.tech, Bitcoin, Ethereum
Securities	None