Ethereum
Ethereum Gas Fee Drop Boosts Crypto Market!
7:30 am ▪ 3 min read ▪ by Eddy S.
The Ethereum network is currently undergoing a major transformation, marked by a historic reduction in gas fees. This situation has significant consequences on the supply of Ethereum, which has become inflationary! Sending the crypto soaring to $3,300 in 24 hours.
Ethereum Gas Fees Drop: Crypto Takes Off!
Over the past 24 hours, Ethereum has seen a 1.11% increase, currently trading around $3,309! This surge comes as gas fees on the crypto network have reached historically low Transaction fees have dropped to an average of 4 Gwei. This reduction in transaction fees has led to a decrease in the amount of ETH burned, making Ethereum’s supply inflationary. In fact, less than 200 ETH have been burned in the last 24 hours, contributing to a supply growth rate of 0.67%.
This drop in gas fees is mainly due to the increasing adoption of Layer 2 scaling solutions and the introduction of blob transactions with the Dencun hard fork in March. These improvements have significantly reduced transaction costs on Layer 2 networks, impacting the entire Ethereum network.
Network Perspectives
Lower gas fees on the Ethereum network have both short- and long-term effects. In the short term, they make crypto transactions more affordable, encourage increased network usage, and potentially increase the value of ETH. In the long term, this fee reduction decreases the amount of ETH burned, thereby increasing the total supply, which could put downward pressure on the price of ETH. However, wider adoption of Layer 2 scaling solutions could offset this effect by increasing demand for ETH. Managing this dynamic will be crucial to Ethereum’s future.
Despite these challenges, some analysts remain optimistic about Ethereum’s future. They believe that lower fees make the network more accessible to end users and that the influx of new capital is a positive sign for the cryptocurrency. ecosystemManaging Ethereum’s supply and inflation will be crucial to its future development.
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Eddy S.
The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.