How Do Layer 2 Scaling Solutions Attempt to Mitigate High Transaction Fee Variability?

Layer 2 solutions, such as rollups and sidechains, process transactions off the main blockchain (Layer 1) in a batch. This allows the cost of the single Layer 1 transaction to be amortized across hundreds or thousands of Layer 2 transactions.

By reducing the reliance on the highly congested Layer 1, they provide significantly lower and more predictable transaction fees, thus mitigating the extreme variability seen on the base layer.