Ethereum Gas fees have dropped to a new low this year, and this is caused by 4 key factors
Ethereum is the biggest gainer on the daily chart among the major cryptocurrencies by market capitalization, up 4.9% at the time of writing to trade at $2,328.58, trading sideways for the week and up 46.7% for the month.
Further appreciation for ethereum appears imminent, with the network addressing a "headwind" facing rivals, improving on higher transaction fees to gain a higher market share. Data from ethGasStation suggests that a fast or standard transaction costs between 45 and 50 gwei.
Gas fees for ETH have been falling since April 20, when the metric spiked to an average of $37, the highest cost since February 2021. Now that trend appears to be reversing, with the metric now near its lowest point for the year, with an average cost per transaction of $10.22.
Anthony Sassano, co-founder of EthHub, believes there are four main reasons why fees are getting cheaper: a 20% increase in gas limits (block size), a cooling of the crypto market, the implementation of Layer 2 solutions, and the adoption of Flashbots, which seems to be gaining momentum. Play an important role.
According to NewsBTC, Flashbots is an open tool and organization that improves and maintains Miner Extractable Value (MEV). It is different from the Optimal Gas Fee Auction (PGA), Flashbots has a positive effect on reducing Gas fees and maintains a "transparent" MEV ecosystem.
The developer, who goes by the pseudonym "Stephane," noted that nearly 72.22 percent of Ethereum's hash rate has been engaged in Flashbots and their tools, which miners use to maximize returns, a metric that has grown nearly 15 percent in the past two weeks. %.
The implementation of EIP-1559 in the London hard fork sparked dissatisfaction among the mining industry, who worked to find new ways to maximize profits. Spencer Noon, an investor, believes that Flashbots may become the main force in the Ethereum trading market.
"Drilling down into early Flashbots data and good genesis blocks, Ethereum miners get an incredible new revenue stream. Added 5% per block, this number will continue to climb, few people know about it What a profound impact this has on Ethereum’s budget.”
In addition, Ethereum investor Aftab Hossain believes that EIP-1559 can reduce transaction bidding wars and stabilize transaction costs. What's more, some negative MEV tactics may not be effective for Flashbots' benefit.
Hossain, however, expects transaction fees to "rise" to current levels as Ethereum's blockchain is used for numerous purposes, with a massive increase in demand, at least in the short term as sharding and new features ETH 2.0 are in development .
The original text comes from newsbtc, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from newsbtc, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
