Ethereum’s Vitalik Buterin believes $0.05 transactions fees are closer than ever

Despite Ethereum layer-1 transaction fees dropping to $3.26 per transaction, Vitalik Buterin believes the desired fee is $0.05 or cheaper to become acceptable. 

Buterin wants Ethereum fees below $0.05 

Transaction fees on Ethereum layer-1 have plummeted to $3.26. Still, co-founder Vitalik Buterin wants to see fees below $0.05 for ETH to achieve mainstream adoption and become the world’s computer.

Buterin told Ryan Sean Adams, the host of the Bankless Podcast, that Ether’s transaction fees don’t meet his desired target. The Ethereum co-founder believes all transactions need to be under $0.05 to be truly acceptable. 

The only layer-2 solution that meets Buterin’s requirement is Metis Network. The decentralized economy platform’s fee is $0.02, but a token swap costs $0.14. Competitors like Loopring charge $0.12 per transaction, while Aztec Network, an open-source layer-2 protocol, charges $1.98. 

Interestingly, the minting of NFTs on the Ethereum blockchain has increased activity on the network and resulted in higher transaction fees. The cost of Yuga Lab’s NFT transactions could hit as high as $14,000 per mint. 

Buterin’s vision for the Ethereum network is affordable fees and higher utility, as he describes ETH as “the internet of money.” 

Buterin was quoted:

Needs to get under $0.05 to be truly acceptable imo. But we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while!

The Ethereum co-founder set this target in 2017 when he mentioned that low transaction costs (below $0.05 per transaction) are the motivation behind the development for scaling the network. It continues to remain the goal for the Ethereum network, and Buterin stands behind it.

He recently proposed an upgrade to increase downward pressure on ETH transaction fees, EIP-4844. This EIP incorporates the critical elements of danksharding, simplifying previous sharding designs and can be implemented without the initiation of previous sharding upgrades. 

The Ethereum network could scale significantly in a short period of time. This would reduce congestion and lower gas fees. A reduction in gas fees could lure developers and traders to the Ethereum network and increase demand for ETH, fueling a bullish sentiment among holders. 

FXStreet analyst have evaluated the Ethereum price trend and noted that it is converging in an ascending parallel channel. It is expected the Ethereum price will enter a 40% upswing following the recent retest of the lower end of the demand zone at $2,800.