Anonymous blockchain analyst polynya.eth shares a comparative study of swap fees across mainstream L1, L2, and some DeFi protocols.
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- Cardano (ADA) remains the most expensive platform other than Ethereum (ETH)
- What does this mean?
High transaction fees should be considered one of the most dangerous bottlenecks in the global DeFi ecosystem. While the network is busy, the dApp can be paralyzed and transactions can be unprofitable.
Cardano (ADA) remains the most expensive platform other than Ethereum (ETH)
Polynya.eth (@epolynya on Twitter) uses Layer 1 platforms (Ethereum, Avalanche, Binance Smart Chain, Cardano) for Ethereum (Optimism, Arbitrum) and Layer 2 scalability solutions, which are the most cost-effective. I’ve just decided.
Current AMM swap Tx rates:
zkSync: $ 0.10
BSC: $ 0.37
Avalanche C: $ 0.39
Ethereum: $ 4.55
Optimistic: $ 0.28 (<$ 0.20 on ZipSwap)
Arbitrum One: $ 0.75
Phantom: $ 0.02
Polygon PoS: $ 0.006
Ronin: $ 0.00
Loop ring: $ 0.00 *
Solana: $ 0.002 **
Cardano: $ 0.86 ***
Terra: $ 0.09
dYdX: $ 0.014 ^— Polynya (@epolynya) March 20, 2022
As far as simple swaps are concerned, next-generation smart contract platforms seem to be able to offer very low rates. For example, Polygon (MATIC) charges users a $ 0.006 fee, while Solana (SOL) can exchange assets for a one-third fee.
The most hyped dApps hosting the first quarter 2022 platform, Terra (LUNA) and Fantom (FTM), will charge transactions for $ 0.09 and $ 0.02, respectively.
The “Classic” Ethereum Killer BSC (now the BNB chain) and Avalanche will offer $ 0.37 and $ 0.39 commissions for cross-asset swaps.
In contrast, Cardano still costs over $ 2, @epolynya added in a comment. This makes the largest Proof of Stake (PoS) network the most expensive blockchain for dApps outside Ethereum (ETH).
What does this mean?
However, the most interesting achievement of this study is the remarkable progress of the Ethereum (ETH) second-tier solution based on rollups. This technology significantly reduces the pressure of transactions on the Ethereum (ETH) mainnet by processing some data off-chain.
zkSync technology allows users to redeem assets for a fee of $ 0.1, while Optimism with integrated ZipSwap charges $ 0.15 for the redemption operation. This result looks innovative as follows:
So rollups are generally already as cheap as alt-L1. The more activities you use, the cheaper they will be, and the more you use optimization, the cheaper they will be.
Analysts also add that major upgrades are pending for both Optimism and Arbitrum. With future advances, prices could be up to one-tenth of what they are today.
