Gas Fees on the Ethereum network have maintained record low levels even as ETH prices reached new highs.
In the recent week, Ethereum's daily average Gas Fee did not exceed 1 gwei, significantly reducing transaction costs despite the high ETH price. This marks an important step forward in optimizing network performance.
MAIN CONTENT
The average Gas Fee on Ethereum has remained below 1 gwei in the past week.
Why have Gas Fees on Ethereum decreased significantly despite rising ETH prices?
The precise answer comes from the optimization of the Ethereum network, which helps balance the load and reduce transaction costs even when asset prices rise sharply. For instance, in the past week, data from @hildobby shows that Gas Fees maintained an average low of under 1 gwei, a positive sign for users.
Ethereum has implemented numerous upgrades to algorithms and transaction processing mechanisms since previous updates, contributing to reduced network congestion. This supports scalability and improves user experience, allowing Gas Fees to decrease even as ETH reaches new record levels.
This stability increases the attractiveness for investors and developers of cryptocurrency projects on the Ethereum platform, opening up opportunities for more efficient trading with lower costs.
How low have Ethereum's Gas Fees been over the past 5 years?
Specifically, on August 16 and 17, the daily average Gas Fees were 0.396 gwei and 0.432 gwei, respectively, according to data from @hildobby, marking the lowest and third-lowest levels in the past 5 years. These figures represent significant improvements compared to previous periods.
This reduction in Gas Fees plays a crucial role in supporting small transactions and improving network accessibility for various user groups. Low fees help make the Ethereum network more popular and increase competitiveness in the cryptocurrency market.
This is a direct result of ongoing developments in blockchain technology and preparations for future upgrades aimed at reducing costs and increasing performance.
"Maintaining low Gas Fees while ETH prices surge clearly reflects the efforts to optimize the network and scalability solutions, bringing Ethereum to new heights of efficiency."
– Blockchain Expert, Market Analysis Report 2024
What factors are currently affecting Ethereum's low Gas Fees?
First, Layer-2 scalability solutions have helped alleviate the load on the main Ethereum network, leading to a significant reduction in Gas Fees. Additionally, technical upgrades such as EIP-1559 have improved the allocation and use of Gas Fees.
Combined with the development of the ecosystem and optimization of transaction structures, Ethereum is currently facilitating many small and complex transactions at lower costs compared to previous stages.
Keeping Gas Fees low not only helps users save costs but also maintains the stability and reliability of the network, increasing competitiveness against other cryptocurrency platforms.
Frequently Asked Questions
What is Ethereum Gas Fee and why has it recently decreased significantly?
Gas Fees are the costs to execute transactions on Ethereum. Recently, they have decreased significantly thanks to technology improvements and Layer-2 scalability, effectively reducing network congestion.
What does a Gas Fee below 1 gwei mean?
Fees under 1 gwei are very low, making transactions cheaper, increasing accessibility, and encouraging more use of the Ethereum network.
Does the high price of ETH affect Gas Fees?
Typically, rising prices can lead to increased Gas Fees, but thanks to technical improvements, Ethereum's fees remain low despite ETH reaching its peak.
What has Ethereum done to reduce Gas Fees in the past 5 years?
Ethereum has undergone many technical upgrades, implemented Layer 2 solutions, and optimized the fee payment mechanism to reduce costs for users.
What impact do low Gas Fees have on users and developers?
Low Gas Fees help reduce transaction costs, promote application development, and increase dynamism in the Ethereum ecosystem.
Source: https://tintucbitcoin.com/phi-gas-ethereum-giam-muc-thap-5-nam/
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