Efforts To Bulletproof Ethereum Are Paying Off In User Metrics - Guide

The Ethereum blockchain underwent a series of upgrades last year that have resulted in lower transaction fees and more active addresses.

Active users on the Ethereum network have overtaken major layer 2s as long-term development strategies begin to pay off.

The number of active addresses on Ethereum exceeded 791,000 on Monday, higher than that of the network’s major L2 players, including Base, Arbitrum and Optimism, according to data from Nansen.

Daily average transaction costs have also reached new lows. On Monday, average transaction fees were only $0.15. The average fee for a transaction on Ethereum was as high as $11 just one year ago.

These metrics for Ethereum utility come ahead of ambitious plans by developers to make the network bulletproof.

Over the last year, the number of active addresses on the Ethereum network has increased 71% from 460,000 accounts recorded a year ago.

Daily transactions on Ethereum have also been hitting all-time highs, and are cheaper than ever. On Tuesday, there were 2.1 million transactions on the Ethereum blockchain with an average transaction fee of $0.15.

Transacting on Ethereum was notoriously expensive in the not-so-distant past. In late 2021 to mid-2022, when decentralized finance was exploding and the non-fungible token craze had reached its zenith, some users reported gas fees of over $200.

This raised questions around how usable Ethereum could really be. Then in 2023, L2 networks exploded to scale the network as major players like Coinbase jumped on board. The crypto exchange launched its own L2, Base, with mainnet opening for users in August of that year.

Last year saw two major upgrades to Ethereum. In May, the Pectra upgrade increased the capacity of blobs — a tool for storing transaction data. More blob space helps rollups post transaction data cheaper and can contribute to lower fees.

Source: CoinTelegraph