Vitalik Buterin has highlighted that recent critical developments in Ethereum’s (ETH) ecosystem have significantly strengthened the network’s fundamentals. This statement was a direct response to claims suggesting Ethereum has “weakened a lot” in the current market cycle. Buterin countered these claims by pointing out the network’s recent advancements and achievements.
Strong Fundamentals
Buterin emphasized the notable decrease in transaction fees on Layer 2 (L2) solutions, which now average below $0.01. This reduction has enhanced Ethereum’s accessibility and cost-effectiveness, crucial for maintaining the network’s competitive edge. On-chain data reveals that Ethereum L2 Arbitrum saw its fees plummet from over $0.50 in March to between $0.01 and $0.004 since mid-April. Additionally, the daily transaction count has consistently exceeded 1 million, indicating that the fee reduction is not due to decreased activity. Similar trends are evident in other Ethereum L2 solutions like Linea, Starknet, and zkSync Era.
Buterin attributed this fee reduction to the implementation of EIP-4844 and the introduction of dedicated block spaces, known as “blobs,” for data sent from L2 blockchains starting March 13. He also highlighted the progress made by Optimism and Arbitrum, both of which have achieved significant milestones in their development, labeled as “Stage 1.” According to Buterin, these platforms are crucial for Ethereum’s scalability, providing faster and cheaper transactions while preserving the security and decentralization of the main Ethereum network.
Improving Technology
In addition to technological advancements, Buterin noted improvements in the user experience for cross-L2 wallets, which now require less manual intervention when switching networks. This enhancement has made interactions within the Ethereum ecosystem more user-friendly.
Buterin also praised the growing maturity of Zero-Knowledge (ZK) technology, which has become more robust and accessible for decentralized application (dApp) developers. The evolution of ZK tooling, along with the introduction of second-generation privacy solutions like 0xbow.io, demonstrates Ethereum’s ongoing innovation in privacy and security.
Moreover, Buterin highlighted the expanding ecosystem for identity, reputation, and credentials within Ethereum, which is experiencing increased adoption and practical use. He also pointed out significant progress in developing STARKs (Scalable Transparent Argument of Knowledge), essential for Ethereum’s long-term security and decentralization goals.
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