Ethereum founder has noted that to be truly functional, Ethereum gas fees must remain below $0,05.
One of the main concerns for Ethereum users is the network's gas fee prices. In recent times, these fees have skyrocketed mainly due to blockchain congestion.
In fact, last week gas fees rose to astronomical figures, reaching over $3.000 at certain points, due to the Sale of plots of land for the game Otherside, created by Yuga Labs and tied to the popular NFT collection Bored Ape Yacht Club.
The purchase of land plots caused a huge congestion on the network, which led to the purchase of a “.eth” domain worth $5 would have to pay up to $4.600 in fees.
More efficient layer 2 solutions
While Ethereum mainnet fees are skyrocketing, layer 2 solutions offer better pricing and much more efficient management of network resources.
This was pointed out by Ryan Sean Adams, founder of Mythos Capital, in a tweet showing the prices of ETH transactions on these layer 2 solutions.
Ethereum founder Vitalik Buterin responded to Adams' tweet, noting that while layer 2 solutions are more affordable, Gas rates need to come down even further so that the Ethereum ecosystem can benefit from them.
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In this regard, Buterin claims that in order to be acceptable, Ethereum gas fees have to fall. below $0,05He then states that they are making great progress and that with chain fragmentation, layer 2 solutions and zero knowledge solutions (ZK Rollups) it is possible to achieve the desired price targets.
DeFi and NFTs are the main problem of network congestion
Ethereum gas fees have always been a concern for users, especially since the emergence of decentralized applications. However, it has been the strong emergence of the NFT industry in the market that has caused the largest increases in ETH gas fees.
In fact, during Otherside's NFT plot sale, demand for the Ethereum network skyrocketed as users engaged in a gas battle to secure the minting of their NFTs. CoinMetrics data from that day shows that spent more than $150 million on transactions.
On the other hand, the problem with gas rates should be solved once the The Merge update, which will link the Ethereum mainnet with the Beacon Chain, changing the consensus mechanism from a mining-based Proof of Work to a more efficient Proof of Stake system with much lower energy consumption.
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