Ethereum fees see a massive drop on Layer-2 chains, should you buy ETH now?

on Mar 7, 2022
  • Ethereum fees on Layer-2 chains have experienced a massive drop.
  • Ethereum users can now make large transactions as low as $0.1 per transaction.
  • zkSync allows ETH transactions for $0.1, while swaps cost $0.16 each.

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Ethereum ETH/USD is the second-largest cryptocurrency token in terms of market capitalization, and its blockchain network has been used as a means of developing a lot of DeFi projects, dApps, and minting NFTs.

However, the Ethereum blockchain also had a reputation for its extremely high gas fees, which users had to pay out throughout each transaction. This has, however, changed as of recently.

The gas price reduction as a catalyst for growth

On February 25, we covered how the deployment of zkSync will impact the value of ETH.

Ethereum fees on Layer 2 chains have experienced a massive drop after the general reduction of transaction fees within the Ethereum network as a whole.

In other words, Ethereum users can make large transactions of ETH, as low as $0.1 per transaction fee.

More specifically, zkSync allows ETH transactions for less than $0.1, while the swaps cost about $0.16 each, and the average cost of moving ETH on other layer chains is around $0.5.

On March 5 through Twitter, Evan Van Ness, who is a Web3 investor, shared this information with the Ethereum community and mentioned how things would only get better going forward.

This has the potential to increase the interest within the Ethereum blockchain, which will lead to an increase in the value of the ETH cryptocurrency token.

Should you buy Ethereum (ETH)?

On March 7, 2022, Ethereum (ETH) had a value of $2,527.96.

To get a better perspective as to what kind of value point this is for the Ethereum (ETH) cryptocurrency token, we will be going over its all-time high value, as well as the performance the token showcased throughout the previous month.

The all-time high value of the Ethereum (ETH) token was on November 10, 2021, when the token reached a value of $4,878.26. Here, we can see that at its ATH, the token was $2,350.3 higher in value or by 93%.

When we go over the performance of the token throughout the previous month, we can see that Ethereum (ETH) had its highest point of value on February 9, with a value of $3,257.68.

However, the lowest point of value the token decreased to was on February 24, when it saw a value of $2,336.87. This indicates a decrease in value of $920.81 or 28%.

However, from February 24 to March 7, the token increased in value by $191.09 or by 8%.

With all of this in mind, we can expect the Ethereum (ETH) token to reach a value of $2,800 by the end of March 2022, which makes it a solid token to buy.