EIP-1559 is applied but gas is not reduced

[MrSpasybo 1049]

I would have expected that after the London update and the adoption of EIP-1559, gas fees would drop as the network automatically calculates gas in line with the actual situation. However the truth is that we don't see 5 gwei or 10 gwei again like in June, instead gas usually ranges from 40 gwei to 50 gwei and each transaction costs a minimum of 8 USD.

Some reasons that come to mind:
+ The explosion of NFT gaming tokens: we can see OpenSea & Axie in the top gas consuming platforms;
+The recovery of the entire crypto market, including many ERC-20 tokens when BTC recovered from $29K to $43K;

Many of my friends have been waiting for London to be able to move ERC-20 tokens from private wallets with cheaper fees, it seems they made a mistake. But we're all glad the market is recovering well, at least we don't use DEXs very often.

Maybe we have to wait for the adoption of layer-2 solutions on Ethereum to get gas 5-10 gwei.

 

Do you think high gas prices are a good signal for market recovery and growth? Does high gas prices have a big impact on your crypto market returns?

[Whited35 15285]

3 hours ago, MrSpasybo said:

Do you think high gas prices are a good signal for market recovery and growth? Does high gas prices have a big impact on your crypto market returns?

There were 5 implementations in this hard fork and more than $10,000 worth of ETH are burnt in every to minutes. Gas fee is not affected but the fee that we have paid is mostly burnt to cut ETH from the circulation. As you have said, definitely, layer 2 solution is expected for the more scalability and yes, high gas fee is also indicating the sign of market's recovery

[kyoukage01 3181]

Maybe the reduction in ETH's gas fees isn't as instantaneous as most people think. A couple of months or so should be enough time to observe whether the EIP-1559 update will affect ETH in any way.

 

A Bitcoin analogy would be its halving - after a change to its supply, a few weeks or months of waiting has to be made before prices start to rise. We should expect a similar change with ETH.

 

[Maaz sultan 265]

On 8/7/2021 at 6:05 AM, MrSpasybo said:

However the truth is that we don't see 5 gwei or 10 gwei again like in June, instead gas usually ranges from 40 gwei to 50 gwei and each transaction costs a minimum of 8 USD.

Now Ethereum is completely converted to Prof of stake and gwi is fluctuating between 10 to5gwei which is a very good sign for eth investors because of high gas fee new users dont get in eth and now the problem is solved , and open the new world of daps and NFTs for all the new users .