The Ethereum blockchain has demonstrated significant improvements in transaction speed, with daily active addresses surpassing major Layer-2 networks in January. This increase in on-chain activity, driven by lower fees, indicates growing popularity and usage of the network. Layer-2 solutions, designed to enhance transaction speed and reduce costs by operating atop Ethereum’s main blockchain, have traditionally attracted users due to previous limitations in Ethereum’s core network. However, recent data reveals that Ethereum itself has made notable advancements in its infrastructure, potentially making it more efficient than Layer-2 alternatives.
Ethereum, the world’s second-largest cryptocurrency, operates on blockchain technology, enabling users to conduct digital transactions without intermediaries. In recent years, rising transaction fees and speed constraints led users toward Layer-2 networks. Yet, the fee reduction in January encouraged users to return to direct activity on the Ethereum blockchain, suggesting improvements that maintain security and decentralization—key achievements for the platform. Despite these gains, challenges remain, including the risk of fee increases amid rising demand and the potential diminishing role of Layer-2 solutions.
Looking ahead, the Ethereum development team is working on further upgrades to enhance network performance and stability. Major updates like Ethereum 2.0 are also under consideration, aiming to improve scalability and environmental sustainability. These advancements are expected to boost Ethereum’s popularity and pave the way for broader blockchain technology progress within the cryptocurrency space.
Source: coindesk
