Ethereum transaction fee hits lowest point in two years on layer 2 big launch


  • Ethereum’s largest layer 2 protocol Arbitrum launched a new chain for ultra-low-cost transactions. 
  • Arbitrum Nova chain is live on the mainnet and open for developers to deploy applications and solutions before public launch. 
  • Analysts believe Ethereum price could recuperate losses and visit $1,400 level. 

Arbitrum Nova, the chain facilitating ultra-low-cost transactions, went live on July 11. Developers can deploy applications and solutions ahead of the chain’s public launch. Ethereum price is ready to recoup losses and begin recovery. 

Also read: This is when Ethereum’s Merge hard fork will be activated

Ethereum’s largest Layer 2 network launches ultra-low-cost transactions

Arbitrum announced the launch of Arbitrum Nova Chain, a big step forward for the Ethereum community. As Nova is operational, two Arbitrum chains are running live on the mainnet. Nova is expected to be the solution of choice for gaming and social applications on the Arbitrum network, Ethereum’s largest Layer 2. 

Arbitrum One will continue to host DeFi and NFT projects. Further, Nova’s launch has reduced the cost of transactions on Arbitrum to ultra-low. Nova is set to give developers equal access to have their apps ready for public launch. 

Arbitrum had announced the launch of AnyTrust technology earlier this year, revealing that this would optimize the network for high security and ultra-low-cost transactions. Nova has called builders and developers to request access to the new chain for developing solutions ahead of its public launch. 

The key difference between Rollups and AnyTrust is the degree of decentralization and transaction costs. AnyTrust is superior to Rollups with cheaper transactions. Networks developed on AnyTrust, like Arbitrum’s Nova chain, can therefore support highly cost-sensitive applications with high transaction volume expectations. 

Arbitrum’s next step is to open up the new chain to everyone and test the stability of Nova. End-users will have the opportunity to test the Nova chain in the upcoming weeks. 

Ethereum witnessed a slew of liquidations overnight

Based on data from Coinglass, Ethereum saw $66.66 million liquidations overnight. A drop in Ethereum price preceded a slew of liquidations. ETH price posted nearly 8% losses overnight, hitting $1,062 level at the time of writing. 

Total Liquidations in Ethereum

Total Liquidations in Ethereum

Ethereum fees hit lowest point in two years

Based on data from Santiment, Ethereum’s average transaction fee has plummeted, dropping below $0.90 level for the first time in two years. The average transaction fee hit $0.88, the lowest level since July 2020. Experts concluded that the decline in Ethereum price is responsible for for the declining fees on the network. 

Ethereum transaction fees

Ethereum transaction fees

Analysts predict Ethereum price recovery to the $1,400 level

Analysts at FXStreet evaluated the Ethereum price chart and predicted a recovery in the largest altcoin. Ethereum price could target the $1,400 level if it hits these key levels. For the price targets and signs of a recovery in Ethereum price, check this video:

 


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