Ethereum’s Layer-2 Strategy Creates Diverse High-Throughput Chains, Avail Executive Suggests; Base Layer Fees Hit 5-Year Lows

Ethereum’s strategy to scale through layer-2 networks is gaining attention in India, with Anurag Arjun, co-founder of Avail, highlighting the network’s potential for unique high-throughput chains. In an interview, Arjun emphasized Ethereum’s approach of utilizing multiple layer-2 solutions, allowing for various high-throughput sidechains. However, he cautioned that without true interoperability, transitioning between layer-2 solutions could be challenging. This perspective contrasts with critics who argue that Ethereum’s focus on layer-2 solutions is detrimental to the network’s performance. Meanwhile, Ethereum’s transaction fees on the layer-1 network have dropped to five-year lows, reaching an average of $0.16 in April 2025. Brian Quinlivan, the marketing director of Santiment, noted that the decline in fees reflects reduced demand for the base layer and declining investor interest in Ethereum. This reduction in fees coincides with fewer interactions with smart contracts, including those related to decentralized finance and NFTs. As a result, institutional investors have adjusted their Ether allocations and revised their price forecasts for the digital asset. The evolving landscape of Ethereum’s scaling solutions and transaction fees is reshaping the narrative around the network’s future in the Indian market.

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