Ethereum Foundation Unveils Major Layer-2 Upgrade to Cut Gas Fees by 90%

The Ethereum Foundation has officially announced a groundbreaking Layer-2 upgrade designed to slash gas fees by up to 90%, marking one of the network’s most significant advancements since the Merge. The update, dubbed “Verde,” will integrate advanced zero-knowledge (ZK) rollup technology directly into the Ethereum ecosystem, dramatically improving transaction efficiency and scalability.

According to the Foundation’s press release, Verde aims to make Ethereum more affordable and accessible for everyday users, developers, and DeFi platforms. “This upgrade will ensure Ethereum remains the most secure, decentralized, and developer-friendly blockchain in the world,” said Tim Beiko, one of Ethereum’s lead developers. Verde is expected to roll out on the Goerli testnet by late October 2025, with mainnet integration planned for early 2026.

The key innovation behind Verde lies in its hybrid ZK-rollup framework, which processes thousands of transactions off-chain before submitting a single proof back to the Ethereum mainnet. This reduces the computational burden on validators and dramatically lowers network congestion. Developers estimate that simple ERC-20 transfers could cost as little as $0.02 post-upgrade, compared to the current $0.20–$1.00 range during high network activity.

DeFi and NFT projects are already responding positively to the announcement. Uniswap Labs and OpenSea both confirmed they will test Verde integration during its trial phase. “Ethereum’s Layer-2 future is here,” tweeted OpenSea’s CTO, adding that reduced fees could bring “the next 100 million users” into Web3.

Market analysts see Verde as a strategic move to strengthen Ethereum’s position against growing competition from Solana, Avalanche, and Base—chains that already offer cheaper and faster transactions. “Ethereum’s upgrade could redefine Layer-2 economics,” said Brian Armstrong, a blockchain analyst at Messari. “If successful, Verde will eliminate one of Ethereum’s biggest pain points and make it far more attractive for mass adoption.”

However, some experts caution that transitioning to a hybrid rollup system comes with technical risks. Decentralization advocates argue that centralizing rollup verification could expose the network to vulnerabilities. The Foundation has addressed these concerns by stating that Verde’s rollup proofs will remain open-source and verifiable by any third party, ensuring transparency and community oversight.

ETH’s price responded modestly to the news, rising 3% to $3,220 within 24 hours of the announcement. Traders expect further upside if the testnet rollout meets expectations and gas fees start to decline visibly.

As Ethereum continues to evolve, the Verde upgrade could mark a pivotal step toward making blockchain technology scalable enough for mainstream use. If successful, it might just usher in a new era where Ethereum transactions are as fast and cheap as those on any emerging Layer-1 chain—without sacrificing decentralization.