Definition ∞ L1 fee dominance describes a market condition where transaction fees on a blockchain’s base layer are significantly higher than those on its associated Layer 2 scaling solutions. This occurs when the demand for block space on the primary network (Layer 1) exceeds its capacity, driving up costs for users. It highlights the economic incentive to utilize Layer 2 solutions, which process transactions off-chain and then settle them more cheaply on the Layer 1. High L1 fees can hinder network accessibility and deter smaller transactions, pushing users towards more cost-efficient alternatives.
Context ∞ L1 fee dominance is a persistent topic in discussions surrounding blockchain scalability, particularly for networks like Ethereum. The ongoing narrative centers on the necessity of Layer 2 adoption to alleviate congestion and reduce transaction costs on the mainnet. Future developments involve further optimizing Layer 2 technologies and their interoperability, aiming to make blockchain interactions more affordable and accessible for a wider user base.
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