Ethereum: Stabilizing gas prices. Is it good for users?

It’s been three weeks since the Ethereum

London hard fork and EIP-1559 implementation, and it seems that gas fees have become a bit more predictable, as intended. The sponsored

Ethereum, London and EIP-1559

update was

implemented on August 5

, changing the way transaction fees are calculated while burning some of them. The update was never intended to directly lower fees, but to make them more predictable.

As explained by Ethereum solutions provider ConsenSys:

Sponsored Sponsored

EIP-1559 could lead to some reduction in gas prices if we assume that predictability of charges means that users are less likely to overpay for gas.

Is stability in gas charges a good thing?

A

chart posted on the Ethereum subreddit by user “frank__costello” shows how fees have stabilized and become less volatile with fluctuations from low to high in the mid-range:

Ethereum: Stabilizing gas prices. Is it good for users?Ethereum: Stabilizing gas prices. Is it good for users?Estimated gas prices: Reddit

Before the update, gas prices ranging from 20 to 100 gwei had more volatility. They were also more volatile than after London

was implemented.

It was noted that the upgrade did not make gas cheaper (as seen by the increase this week). However, it does give more certainty that the deal

will be included in the next block if the correct base charge is set.

Reddit user “Tenoke” pointed out that this may not be a good thing. As there were more options to transact at a lower fee, as evidenced by the drops below the 20 gwei level before the introduction of EIP-1559. Many people were happy waiting longer but paying less, “Tenoke” added, before declaring

See also  Follow FLOW: where to buy FLOW as it climbs 15

:

Like it or not, the main feature of EIP-1559 was that some of the profits of the miners are now indirectly given to the whales through flaring.

As reported by BeInCrypto, the increase in transaction fees increased the amount of resource burned by the network, pushing it over 100,000 ETH

.

Ethereum Price Update

At the time of publication, the Ethereum price was holding steady at $3125, according to CoinGecko

. Resistance is currently around $3300 while there is strong support at $3000.

Ethereum has gained 36% over the past month. It remains 28.5% down from its record high of $4357 on May 12.

Explanation

All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader with respect to the information on our website is solely at the reader’s own risk.