Users on Ethereum faced speed and cost issues for years until the launching of Ethereum 2.0 upgrade solutions. Through the implementation of Proto-Danksharding (EIP-4844) and Layer 2 (L2) solutions along with gas fee enhancements, ETH responds with remarkable capabilities in scaling its operations.
Understanding Proto-Danksharding allows one to grasp its role in the Ethereum scalability improvement process.
Arbitrum along with Optimism and zkSync solutions through Layer 2 continue to assist
Ethereum in coping with congestion issues.
ETH price tag will it become reasonable for users to execute transactions?
Does Ethereum 2.0 possess enough strength to match Solana and Cardano?
Also read: Bitcoin at $150K? Post-Halving Price Predictions for 2025
1. Proto-Danksharding (EIP-4844):
The Biggest Ethereum Upgrade Since The Merge
What is Proto-Danksharding?
Proto-Danksharding represents an early version of full Danksharding that operates as Ethereum’s ultimate scaling system according to EIP-4844. The blockchain protocol implements blob-carrying transactions as part of its off-chain storage solution which decreases rollup transaction fees.
How Does It Improve Scalability?
The solution decreases the costs of L2 transactions by a maximum of ten times
The protocol enhances block storage optimization while staying short of complete sharding implementation.
Ethereum obtains readiness to embrace Danksharding technology in forthcoming years after 2025.
Current Impact on ETH
Following its deployment, the operating fees on Arbitrum and other L2 networks dropped substantially which made Ethereum more practical for everyday usage.
2. The implementation of rollup technologies at Layer 2 presents Ethereum with a lifesaving solution.
Why Ethereum Needs L2 Solutions
The main net of Ethereum executes between 15 to 30 transactions per second yet Solana successfully handles over 2,000 TPS without any performance issues.
Layer 2 rollups solve this by:
- Processing transactions off-chain
- Batching them into a single Ethereum transaction
- Reducing fees by 90%+
Top Ethereum L2 Networks in 2024
| L2 Solution | TPS Capacity | Avg. Fee |
| Arbitrum One | 4,000+ | $0.10 |
| Optimism | 2,000+ | $0.15 |
| zkSync Era | 3,000+ | $0.20 |
| Base (Coinbase) | 1,500+ | $0.12 |
L2 Adoption Growth
- The Ethereum network experiences more than 60% transaction volume through its L2 systems.
- The total value of funds trapped in L2 solutions exceeds thirty billion dollars.
3. Funds transfer expenses on Ethereum become more affordable through recent platform enhancements.
- The pattern of gas fees exhibited changes following the implementation of upgrades.
| Period | Avg. Gas Fee (ETH Transfer) |
| 2021 (Peak) | $50+ |
| Pre-EIP-4844 (2023) | 5−5−15 |
| Post-EIP-4844 (2024) | 1−1−3 |
Why Are Fees Dropping Ethereum 2.0?
The implementation of rollup solutions reduces the congestion on mainnet networks.
Proto-Danksharding = Cheaper data storage for L2s
Fee burning through EIP-1559 operates as a mechanism to achieve supply stability in ETH markets.
Will Gas Fees Keep Falling?
A complete launch of Danksharding during 2026 would allow Ethereum to reach average fees under $0.50 which would match Solana’s pricing.
4. Can Ethereum 2.0 Compete With Solana & Cardano?
Ethereum vs. Solana vs. Cardano (2024 Comparison)
| Metric | Ethereum | Solana | Cardano |
| TPS | 30 (100K+ w/ L2s) | 2,000+ | 250+ |
| Avg. Fee | 1−1−3 | $0.001 | $0.20 |
| DeFi TVL | $50B+ | $4B+ | $1B+ |
| Smart Contract Dominance | 70%+ | 15% | 5% |
Ethereum’s Advantages
Largest developer community
Most secure & decentralized
The second-layer ecosystem of Ethereum grows its operations at a quicker pace than its market rivals.
Remaining Challenges
The complete implementation of Danksharding remains a development that will be ready only after numerous years.
The current status shows that Solana performs transactions at a lower speed and cost than Ethereum does.
The energy consumption of Cardano exceeds that of Ethereum.
Conclusion
Is Ethereum Finally Scalable?
Ethereum 2.0 deployment of Proto-Danksharding and L2 systems achieved substantial scaling increases that reduced gas fees below an 80% reduction during 2021. Alongside its lower transaction costs, Solana does not challenge Ethereum when it comes to security, decentralized finance, or development activity levels.
Final Verdict
Ethereum’s L2 solutions enable the platform to become usable by users in the short run.
The introduction of Proto-Danksharding technology will result in decreased transaction costs during the mid-term period. From a long-term perspective, Full Danksharding has the potential to establish Ethereum as the best blockchain solution.
Ethereum 2.0 includes Proto-Danksharding and L2 rollups that make transactions more affordable and scalable. Three layers including Arbitrum and Optimism and zkSync now process sixty percent of all transactions which makes Ethereum payments affordable. Can it compete with Solana? Our research examines the three key aspects which are TPS, fees, and upcoming system enhancements.
