Are the gas-prices influencing the Ethereum bull-run right now?

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!

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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.

Source: Pixabay

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!

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This is an original article written by me for Project Hope!

Comments 13

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!

I am really glad to hear this and this is the only reason that i am not using services of ethreum becaause i have to pay high gas fees which is not affordable for anyone. Thanks for this update.

03.05.2021 10:33

High gas rates will make tokens migrate to another blockchain, as in the case of SENSO token that moved to polkadot

03.05.2021 15:09

I know, but it is a challenge as well for projects, because they know that when Ethereum reaches 2.0, then it should once again be easier. Should they pick the biggest and most popular blockchain now and "suffer" until 2.0 is released, or just choose another? Polkadot is hot, so I can easily understand why projects decide to migrate to that chain!

04.05.2021 15:40

Gas fees are miners' pay for their work and although, the gas fee change might be part of the reason, then, the gas fee is too high for ETH even at the current rate.

03.05.2021 23:58

Of course it is too high, I totally agree. But, it is getting better, and the final goal is Eth 2 with way lower fees. So, we are headed in the right direction, even though it is still far from ideal!

04.05.2021 15:39

Gas fee left me no option than to leave some of my eUSDT in an ERC20 wallet. I don't have ETH in the wallet, and to send one there will cost me $20. That's too much to bear. Till now, the cost of gas fee on ETH network is too high, and I hope something better happen soonest

04.05.2021 08:41

Man, that is just so stupid. To transfer funds from the wallet, you need to spend ETH to send ETH to the wallet, and then spend even more ETH to send those funds from that wallet again. I understand your feelings there...

04.05.2021 15:41

I invite you to check Polygon (Matic) that is a layer scaling solution for Ethereum.

04.05.2021 11:55

Yeah, such scaling solutions are great, and I hope they will be implemented more and more! :)

04.05.2021 15:39

With no doubt, the reduced price of gas fee could be the reason for the increase in price but then, the gas fee is being set by miners. There have been several alternatives to ETH, I believe the reason a lot of people are still with Ethereum is the loyalty factor to a blockchain.

04.05.2021 13:50

The gas fee isn't set by miners in that way... but when there are lots of transactions, the gas fees increase, and thus the miners earn more, as they can pick the transactions paying the highest fees.

I guess Ethereum is the biggest for smart contracts, and that is a big advantage for the chain!

04.05.2021 15:38

I dont think eth 2.0 will pull through this year. I dont think the miners who profit from the high gas fees will let it happen. Some critics even question their ability to pull this one through.

I dont use eth. I dont think i would any time soon. It is just not the blockchain for me

04.05.2021 20:26

Thank you very much for this update. I hope you continue with the developments on Ethereum, because I would certainly like to work on your network as well. However, for now I prefer the BSC network. Thanks for sharing.

Financial Markets Analyst.

05.05.2021 02:54