Expansion took away the excitement of Ethereum? Silence followed by an explosion
Recently, with the decline of the encryption market and the development of side chains such as Matic and BSC, the Gas fee for transactions on the Ethereum chain has been greatly reduced. It has been maintained at around 10Gwei for many consecutive days, and even as low as 5Gwei.
The last time the Gas fee on the Ethereum chain remained at this level was in July 2020, before the DeFi market broke out. At that time, the price of ETH was still around $400.
The average transaction fee of Ethereum has also dropped to 3.8 US dollars, which is the low point in 2021, while the price of ETH has increased by as much as 4 times compared to the beginning of 2021.
In the middle of June, the transaction fee income of miners dropped sharply to only 92 million US dollars, showing a cliff-like decline compared with the 1 billion US dollar fee income in June.
Such a situation may become the norm in the future. With the gradual landing of Ethereum Layer 2, more and more transactions will be transferred from Ethereum to these Layer 2.
But miners don't need to worry about their income being reduced. The expansion of Ethereum is a problem that must be solved to introduce more application scenarios. After the performance is improved, the number of enterprises that will use Ethereum as a platform can increase significantly.
Linda Xie, co-founder of Scalar Capital, recently wrote about the potential of Ethereum.
“While many people in the tech world have heard of Bitcoin, cryptocurrencies, and the concept of the blockchain, less is known about smart contracts, which are Ethereum’s major innovation. Anyone can write a smart contract and deploy it to the public. On the chain, various innovations are realized.Hot concepts like NFTs, DeFi, and DAO—respectively represent new ways to determine the property rights of certain things, provide people with a better financial system, and new ways of synergy and cooperation— It’s all powered by smart contracts.”
"Non-cryptocurrency businesses can improve efficiency and expand more functions by introducing an open ecosystem like Ethereum, just like the API economy, which can enable various types of companies, including mother and baby stores and small businesses, to gain access to their Originally unobtainable data and capabilities. In the field of technology, a typical case is that Reddit has launched an experiment with community points. Tokens are used to reward users for publishing high-quality content, which can be exchanged for unique items in the community. Reddit plans to use community points in exchange for ERC-20 tokens, which will allow them to be used in existing Ethereum wallets and applications. This expands more functionality for community points, but Reddit does not need to rebuild itself. Even if it is not a Cryptocurrency companies, which can also obtain the benefits of cryptocurrency applications for their users, such as Reddit users can use the decentralized exchange on Ethereum to exchange their points for other tokens. This will make their points from There is liquidity from the start. At the same time, once introduced to the Ethereum ecosystem, everyone can incorporate community points into their own projects, thereby creating more use cases based on this.”
As an open, license-free development platform, every communication and collision between traditional industries and the blockchain may bring significant revolutionary innovations to Ethereum, and ETH is used as resources such as payment computing and storage on this platform. The pass, it will be given a higher value as the ecology grows.
The current decrease in Ethereum transaction fee income is a good time for powerful miners to expand their mining income. Miners with higher costs will withdraw from mining at this time due to economic reasons, while strong miners can earn more income.
