Synthetix returns to the Ethereum mainnet after three years

According to Cointelegraph, the perpetual contract trading platform Synthetix has announced its return to the Ethereum mainnet. Its founder Kain Warwick stated that previously, high gas fees and network congestion forced derivatives platforms, including Synthetix, to migrate to Layer 2 networks or other alternative blockchains. However, the transaction fees on the Ethereum mainnet have significantly decreased, making it capable of running high-frequency financial applications again.

It is reported that Synthetix migrated to the Ethereum Layer 2 network Optimism in 2022 and subsequently expanded to Arbitrum and Base. Etherscan data shows that on Wednesday, the average gas fee on Ethereum was about 0.71 gwei, a decrease of nearly 26 times from 18.85 gwei on the same day a year ago. Warwick pointed out that with the progress of scaling both Layer 2 and the mainnet, it is now possible to run critical infrastructure on the mainnet.

He believes that the Ethereum mainnet possesses the most significant liquidity, assets, and margin in the crypto world, making it the most efficient on-chain market, and anticipates that other decentralized exchanges for perpetual contracts will also follow suit in returning. He also stated that 2025 will be the most significant year for Ethereum since the merge in 2022, with more attention being given to the needs of network builders.