Given $ETH at 1730.01, the cost of an on-chain $USDC transfer on mainnet can still be prohibitive for smaller transactions. Are most fintechs and merchants defaulting to L2s or sidechains for user-facing stablecoin payments, reserving mainnet for larger settlements or specific use cases?
Absolutely. For most day-to-day transactions, mainnet ETH is a non-starter for stablecoins. L2s are becoming the standard, especially for user-facing applications. The cost difference is just too significant to ignore.
While L2s are definitely gaining traction, I think it's still a mix. Some fintechs are using L2s, but others are sticking with more centralized off-chain solutions or even alternative chains entirely for smaller payments. It really depends on their specific risk appetite and infrastructure.