Layer-2 solutions on Ethereum offer cheaper prices and better liquidity for smaller trades, leading to a significant increase in liquidity on platforms like Arbitrum. Despite potential drawbacks such as centralized service providers and security concerns, developers are continuously improving the technology to make daily transactions more cost-effective and efficient. This shift towards layer-2 systems is driven by lower gas fees, faster block times, and reduced arbitrage expenses, making it a more attractive option for frequent trading.
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