#GasFeeImpact

Ethereum gas fees can be high due to network congestion. When many users are trying to make transactions or execute smart contracts at once, the demand for block space increases. This leads to higher competition for processing, driving up the cost of gas. Additionally, Ethereum's current proof-of-work consensus mechanism can limit scalability, further contributing to congestion and higher fees. The shift to Ethereum 2.0 and the implementation of layer-2 solutions are expected to reduce congestion and lower gas fees by improving network efficiency and scalability.