Doing transactions on the Ethereum network has been a nightmare for nearly 6 months. A simple task such as sending Ethereum could easily cost $3 or $4 using MyEtherWallet, MetaMask and so on. Much worse if you planned on sending Ethereum from an Exchange, as many of them charged you $20 or more for sending Ethereum. If you wanted to send other ERC20 tokens it was even worse.
But, then came the Berlin fork in the midst of April, and since then things have started to look nicer. Instead of doing transactions setting the gas fee to somewhere between 100 and 200, you can now easily do transactions with gas fees between 20 and 40. That is a big difference!
Of course, compared to transactions on the Binance Smart Chain, it is still expensive, but those who want to trade on Uniswap or interact with smart contracts on the Ethereum blockchain are for sure noticing the differences!
Is this causing the bullish run and Ethereum to cross $3k?
I am no professor, so I have no way of saying something for sure. But, I am very convinced that these improvements has made the Ethereum blockchain much more interesting to use. Once again you can transfer tokens without having to pay a fortune, and interacting with smart contracts and partaking in Defi projects has become more interesting again.
So yes, I do believe that the lowered gas fees are strongly influencing the recent price increase for Ethereum.
Let us not forget about Ethereum 2.0
And let us not forget that Ethereum 2.0 is on the way. It should go public sometime this year (probably in Q4), and it will remove Proof of Work (mining) and turn it into Proof of Stake (PoS). This will make an end to those brutal transaction fees once and for all.
But, can you imagine how this is going to boost the value of the token as well? People expect the price to increase, and many people want to stack up as many as possible to stake in the new protocol.
So, I am not entirely sure, but with the nice gas prices and Ethereum 2 coming up, I have a feeling that Ethereum might have just started!
This is an original article written by me for Project Hope!