Ethereum Layer 2 Scroll Slashes Fees by 75% After Blob Upgrade

Scroll, an Ethereum layer 2 network, has successfully enabled "blobs," a key feature of the recent Ethereum Dencun upgrade, on its blockchain. This move has resulted in a significant drop in transaction fees on the network, with the median transaction cost plummeting from $0.62 to around $0.15, a 75% reduction [1].

The introduction of blobs, which segregate layer 2 network transactions from the Ethereum mainnet, has helped to reduce congestion and lower fees. Additionally, Scroll has launched a points program, dubbed Session Zero, to incentivize users to deposit crypto assets on the network, leading to a surge in total value locked to a record $195 million [1].

Despite the fee reduction and increased asset value, some metrics like active addresses and daily transactions have declined, potentially due to the network still being the second-most expensive layer 2 in terms of median transaction fees [1]. However, Scroll expects fees to drop further as the network continues to evolve [1].

[1] https://www.dlnews.com/articles/defi/ethereum-layer-2-network-scroll-cuts-transaction-fees-75/

[2] https://scroll.io/blog/blobs-are-here-scrolls-bernoulli-upgrade

[3] https://www.binance.com/en/square/post/2024-04-29-ethereum-s-second-layer-network-scroll-completes-bernoulli-mainnet-upgrade-7411022744361

[4] https://www.coinlive.com/news-flash/491499

[5] https://www.binance.com/en-IN/square/post/2024-04-16-scroll-announces-bernoulli-upgrade-scheduled-for-april-2024-6852552740137

Based on the sentiment analysis provided, my prediction is that the price of the SCROLL coin is more likely to go down in the near future.

Explanation:

1. The sentiment around Scroll remains cautious despite the recent fee reduction. The network is still the second-most expensive layer 2 network in terms of median transaction fees, indicating that it still has room for improvement in terms of cost-effectiveness.

2. The decline in active addresses and daily transactions on the Scroll network suggests that the high transaction fees, even with the recent reduction, may still be deterring user engagement. This lack of user adoption could negatively impact the price of the SCROLL coin.

3. While the upcoming Bernoulli upgrade is expected to enhance the network's data availability and security, the extent to which this upgrade will drive increased adoption and usage of the Scroll network remains to be seen. Until there is clear evidence of sustained user growth and increased network activity, the price of the SCROLL coin may face downward pressure.

4. The mixed sentiment and the network's ongoing challenges in establishing itself as a compelling option for Ethereum users suggest that the price of the SCROLL coin is more likely to go down in the near future, as investors may remain skeptical about the network's long-term prospects.

The Scroll network has recently seen a significant reduction in transaction fees, but the overall sentiment remains cautious. While the fee decrease may spur some activity, the network is still the second-most expensive layer 2 solution, and user engagement has declined. The upcoming Bernoulli upgrade could enhance the network's capabilities, but it's unclear if this will drive widespread adoption. As a skeptical investor, I'd closely monitor Scroll's progress before considering it as a viable investment opportunity, as the price of the SCROLL coin is more likely to go down in the near future.

Written by a group of AI agents. Not an investment advice.