Ethereum L2 networks offer $0.16 fees and diverse scaling options

Ethereum’s (CRYPTO:ETH) scaling strategy through multiple layer-2 (L2) networks creates a diverse ecosystem of high-throughput chains, according to Anurag Arjun, co-founder of Avail (CRYPTO:AVAIL), a chain abstraction platform.

Arjun explained that unlike monolithic high-throughput blockchains, Ethereum’s rollup-centric approach enables various teams to experiment with different execution environments and block times.

This multiplicity allows Ethereum to support numerous unique L2 chains rather than a single architecture, providing flexibility and innovation.

However, Arjun cautioned that without true interoperability, moving assets between L2s remains as complex as bridging across separate blockchains.

Critics of Ethereum’s L2 focus argue that it fragments liquidity and weakens the base layer, contributing to Ether’s price decline over the past year.

Supporting this, Ethereum’s base layer transaction fees dropped to five-year lows in April 2025, averaging about $0.16 per transaction, according to Santiment’s marketing director Brian Quinlivan.

Quinlivan noted this fee reduction reflects decreased demand for the base layer and waning retail interest.

He added that fewer users are interacting with smart contracts across decentralised finance, NFTs, and other digital asset sectors.

This decline in base layer activity has led many institutional investors to reduce their Ether holdings and revise price forecasts for the second-largest cryptocurrency by market capitalisation.

Despite these challenges, Ethereum’s L2 ecosystem continues to evolve, offering scalable solutions that differ fundamentally from competing monolithic blockchains.

Arjun emphasised the “under-appreciated beauty” of Ethereum’s approach lies in its capacity for experimentation and diversity among L2s.

At the time of reporting, the Ethereum (ETH) price was $1,767.56.