Don't expect ETH Fees to drop anytime soon

Don't expect ETH Fees to drop anytime soon

At this point in time, Ethereum has become a rich-man chain, and will probably stay this way until ETH2. I know that everybody complains about high fees and it's perfectly normal, but if we are honest ETH will remain capable of only 1.2M -1.3M transactions, and that's a very small number of transactions in relation to the chain popularity. 

Sidechains like BSC, polygon, xDai, or even clone chains Solana and Tron, or even different chains like Telos are all profiting from high fees on Etherium either by being an EVM or implementing EVM or being EVM-ish since EVM is at least for the moment the most popular standard blockchain developers choose. 

Of course, all those examples have POS consensus mechanisms which is the reason they can offer such low fees, so many hard die ETH fans will point ETH until ETH2 can scale with Rollups which is true, but in reality adoption of Rollups remains slow as f**k, because they come with some disadvantages and if the Rollup adoption doesn't explode than users are forced to use L1 to transact.  

Many will point that it's better to bridge your assets on L2 side-chains, but again there are many Dapps that don't support L2, and transferring assets there isn't a solution. 

There's a lot of value in the ETH network, and if you are rich high fees won't bother you so much, in a way if you're rich you will even like high fees since it may mean that only people with a lot of ETH will be able to buy you JPEG, is like the gentrification of ETH network, where high fees push plebs out of the chain. 

At this point, I am skeptical that anything can reduce fees costs in the near time, only a massive drop in ETH price could reduce fees because then there's a high probability that the popularity of ETH will drop especially for rich folks that get rapidly disheartened by the prospects of low profits. 

Or another improbable scenario is a bump in the block size which we all know is something extremely controversial that would not happen since devs, along with Buterin along with miners are probably against. I don't know why Buterin talks so much about the public good when the number one public good that would allow more accessibility to the ETH network is lowering fees, clearly is not possible to come with a solution that will please everybody, but if you really care about public good just propose a drastic one, even if that might screw things up, then revert things with a hard fork, at least such action will surely accelerate the transition to ETH2. 

In closing, as you can see my 2-gwei opinion on the ETH fees, is pretty darn pessimistic, only time will tell if this opinion was right, so I'll check this article in 3-4 months.



How do you rate this article?





Crypto Ecosystem Analyse
Crypto Ecosystem Analyse

Everything is visible on the blockchain, but with billions of blocks many things slip by.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.