Friday, June 9, 2023

Ethereum Gas Fees Drops to 90%


The cryptocurrency markets have been watching Ethereum 2.0 intently as it prepares to launch a big update in June 2022.

One of the significant positive events in the run-up to the ‘Merge’ has been the reduction of the ETH charge.

Fees Continue to Go Down

Ethereum could rebound from its downturn and ascend above $4,000 if investors and analysts remain enthusiastic on the altcoin. Since November 2021, the Ethereum blockchain’s high network costs, which were formerly one of the biggest barriers to investment, have reduced by 90%.

According to on-chain data provider Santiment, the Ethereum charge has dropped by 90% in the previous six months, easing customer concerns. At the same time, this could explain the recent increase in ETH prices.

Ethereum fees have been significantly lower than in the previous 8+ months, according to the data provider. The average petrol price is only $5.81. On May 11, 2021, average costs were $69.57, and on November 8, 2021, they were $62.85.

Furthermore, according to data provider Santiment, Ethereum (ETH) is more closely linked to the S&P 500 than Bitcoin (BTC). Since the FOMC announcement three weeks ago, $ETH has profited from this. Watch for any downswings in the May FOMC update, according to the supplier.

If the Fed boosts interest rates, the stock market may see a brief correction. In the cryptocurrency market and the price of Ethereum (ETH), a similar effect may be noticed. In the event of a drop, crypto market researcher Michäel van de Poppe believes ETH has a buy zone around $3,100.

According to Crypto Fees, the network’s fee income has surged 39 times in seven days when compared to bitcoin. During the last seven days, Ethereum’s average fees were $24.4 million, whereas bitcoin’s costs were $623,000

Possible Rally This Quarter

Ethereum, according to analysts, has a good chance of becoming the next big cryptocurrency. The CEO of BitMEX, Arthur Hayes, predicts that Ethereum’s price will outperform its layer-1 competitors.

Mark Cuban, the NBA’s Dallas Mavericks owner and a multibillionaire investor. He considers the merger to be one of Ethereum’s most hopeful and anticipated developments. Cuban remarked in an interview with Fortune that he believes Ethereum would outperform other cryptocurrencies.

Another positive factor fueling Ethereum’s price rise is its greater link to the S&P 500 and technology businesses. Experts analyzed the Ethereum pricing pattern and predicted a cryptocurrency boom.

The price of Ethereum has surged over the 200-day moving average, according to FXStreet analysts. At the same time, the altcoin’s chart shows that things are looking up.

Grow With New Upgrades

One of the most significant developments in the Ethereum community has been the launch of the EIP-1559 protocol. This system, which includes a burn mechanism, exerts deflationary pressure on the Ethereum (ETH) price.

Ethereum, on the other hand, is expected to have a fantastic few months ahead of it. The Kiln testnet merging is currently happening, and its engineers are working on scalability changes. Despite its poor performance and expensive gas fees, Ethereum has seen a lot of DeFi activity.

All of that, however, is set to change as ETH2 upgrades, also known as the consensus layer, are introduced. Ethereum’s performance will drastically improve, benefiting both its price and broad use. The integration will go live on the mainnet later this year. These considerations, as well as a growing DeFi market and the launch of new platforms, may drive more investment in the area.

Ruby Vester
Ruby Vester
Ruby Vester started writing for Cryptoconstellation in 2017. After a successful career as a content writer for a business blog, she found an interest in the crypto world. Ruby has lived in England for two years, and the returning to her hometown, Madrid.

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