#GasFeeImpact

đŸ”č How do gas fees affect the market?

✅ Increase in gas fees → can slow down activity as users avoid costly transactions.

✅ Decrease in gas fees → encourages an increase in transactions, which boosts the use of decentralized applications (dApps).

✅ Network congestion → leads to large fluctuations in fees, as seen during peak periods on Ethereum.

✅ Token burning and impact on prices → in certain networks like Ethereum after EIP-1559, the burned gas fees reduce supply and increase the asset's scarcity.