Ethereum Costs Hit Lowest Level Since Last Summer
Ethereum Costs Cool Down After Massive Spike Caused by the Terra Chaos
According to data from Santiment, Ethereum gas prices have fallen to levels since last summer.
Image by @Barchart
Ethereum gas rates are expressed in giga wei (Gwei). Users have to pay them to perform any activity on top of the Ethereum blockchain.
Gas rates usually get significantly higher if the network becomes overcrowded.
Earlier this month, Ethereum fees skyrocketed as a result of Terra’s implosion, despite the fact that the Ether price plummeted.
After TerraUSD (UST) lost its peg, users started transferring more Ethereum-based centralized stablecoins. Tether (USDT) and Circle’s USDC briefly became the biggest gas guzzlers on the Ethereum network.
Ethereum continues to be criticized for its high transaction costs. The lack of scalability has led to the emergence of competing blockchains like Avalanche and Solana.
That said, Ethereum is expected to solve the aforementioned problem using post-merger sharding.
As reported by U.Today, co-founder Vitalik Buterin predicted that Ethereum 2.0, the proof-of-stake iteration of the second-largest blockchain, could launch as early as August.
Aside from eliminating high gas tariffs, the merger is also expected to drastically reduce Ethereum’s energy consumption.