Will Ethereum gas fees be the downfall of Ethereum?

Root

New member
Die hard Ethereum lovers will argue that such a statement as above sounds outrageous and that this can never happen especially with Ethereum 2.0 already rolled out but lets do a mild analysis on the situation and ill argue some points why I believe this is possible.

First off, Ethereum 2.0 is only in phase 0 so we wont be seeing any changes any time soon in terms of gas fees and for early DeFi adaptors this is not really that big of an issue with most of them staking their Ethereum with the initial launch of Ethereum 2.0. For new comers to the DeFi space the landscape looks somewhat different. All they see is high gas fees that make it useless to turn a profit with an average investment of $100.

What is the impact of Ethereum gas prices on the mindset of new comers? Well, its simple, they going to look for alternative blockchains that offer DeFi for example, Binance Smart Chain or Tron which is dramatically cheaper and use them instead. I already see this trend happening in third world countries who all starting out with Cryptocurrencies. Granted they way behind in terms of the DeFi ecosystem but they well placed at a time when DeFi is booming to attract all the new comers that just isn't willing to pay the high Ethereum gas fees. 2 years is a long time and we've seen the Ethereum DeFi ecosystem grow to what it is in less than that time so don't be shocked if we see another blockchain pulling weight in this space. Its crazy to think Synthetix has gain such great adoption with its sTokens. I honestly reviewed it and I think Morpher is better in many ways. MPH created a side chain that has zero transaction fees and it solves many problems that could benefit the DeFi community dramatically especially with mainstream adoption coming in to play. Its a pity that this hasn't taken off that well yet. I have hope that it could be big but people need to be aware of it and give it the time of day. Personally I prefer it over Synthetix.

Another important point is that with Ethereum moving from PoW to PoS this can also hinder people from actually wanting to use DeFi protocols cause you can earn Ethereum just for holding it. All in all I still think Ethereum is going to be the successor of the DeFi space but I do believe that another blockchain most likely Binance Smart Chain will gain a mass following over the next two years and they will have a strong hold over the low cap investors who are just getting started. This is evident with Trust Wallet becoming the official Binance Smart Chain Wallet.

Lastly if there is going to be two Ethereum coins trading it still doesn't resolve the current issues most of us face now in some way or there other where you have a small balance of one coin but you cant convert it to eth because of the fees. Ethereum 2.0 will resolve the long term issues that Ethereum faces but it will not do anything for the current issues faced on Ethereum 1.0. I know first world countries love Ethereum but I can tell you now that in third world countries sentiment is changing fast and believe it or not if Crypto is here to stay it is these third world countries that will have to take the leap in order for it to become a reality. For example, in Africa ADSL never had its day but almost as soon as Fibre is available in a area its sold out even before its launch. Hence Africa went from dial up straight to Fibre and I think the same thing is going to happen with Cryptocurrencies and Ethereum has the necessary ecosystem to make this happen but its so damn expensive that it will most likely happen on another blockchain if it does occur in the next 2 years. If it is a success you can best believe that this will be the end of Ethereum in third world countries.
 

Yugocean

Valued Contributor
ETH gas fees is very much a reason, Ethereum lovers have made it cross $700 mark, however there is no way to make it popular by just presenting themselves. There are many websites where Admin offer to pay in cryptocurrency and payment are issued excluding fees, members full amount, however ETH was an ex-option there, when asked, there was same type of reply from all - gas fees costs much burden. ETH 2.0 is stakable token, where people stake their ETH and produce gas fees from it, many ERC 20 tokens (from Ethereum blockchain) are also low fees, they will rule this blockchain if ETH lose it's value.
 

Nova

Active member
Each month ETH goes through such a pain that the cost of per transaction continues to stay higher. And there does not seem to be any improvement so far. I have mostly seen ETH transaction eating most of the cost a lot of those transactions are costly. I am wondering if it is worth to even buy ETH anymore. I'd instead buy the Bitcoin instead. And perform the regular transactions through the BCH. This way there would be good price and less load on the transaction servers too.

I think ETH needs to update for minimum amount of the transaction fees. I guess unless they do something like that. There does not seem to be any good way that they will get the better market rate as well. So on that note one has to definitely consider how the ETH can do well in near times to come.
 

Josemendez

Verified member
I was among the people that believed that ethereum will have serious setback in coming years due to the high gas fee associated with the ethereum network , however with the launch of ethereum 2.0 , there has been a reduction in the gas fee withnessed during any form of ethereum transaction.
having seen this , I think that ethereum will soar high in coming months , because of these reasons ;
1. reduction in gas fee
2. more Defi projects and smart contracts built on its platform.
investing in ethereum now will be a good investment ,because there is indications that the price of ethereum will rise above $1000 in this year . I am no longer disturbed by the gas fee issues with ethereum as it was before.
 

Yugocean

Valued Contributor
I was among the people that believed that ethereum will have serious setback in coming years due to the high gas fee associated with the ethereum network , however with the launch of ethereum 2.0 , there has been a reduction in the gas fee withnessed during any form of ethereum transaction.
having seen this , I think that ethereum will soar high in coming months , because of these reasons ;
1. reduction in gas fee
2. more Defi projects and smart contracts built on its platform.
investing in ethereum now will be a good investment ,because there is indications that the price of ethereum will rise above $1000 in this year . I am no longer disturbed by the gas fee issues with ethereum as it was before.
Ethereum is touching $1k in the market, it is the first time this token is going great height, but I agree that it's gas price would have made it totally out of market the launch of ETH 2.0 helped it, low fees and stakable currency made it keep and rise value. Yet people may move out because I do not see if the fees is dropped in gas. Some ERC20 tokens from Ethereum blockchain also become their own due to fees issue, like Tron which turned into Tron blockchain with very low fees. The Gas (gwei) fees will drop when there is low transaction, and high when there is too much transaction in blockchain - this still makes it to use less for saving.
 

Putta Vince

Active member
People are always interested to invest in Ethereum , though the transaction fees or the gas fees is significantly higher than other coins. That's because Ethereum has been rising in it's price consistently , and has never seen a downfall in it's price especially this year. It kept on rising making people get attracted to invest in it. The gas fees isn't really a problem any more because of the eth2.0 or due to the fact that you can change the gas fees in many of the decentralized crypto wallets like Trust wallet.
 

Sotherefore

VIP Contributor
Personally I have given up on investment on Ethereum some months ago because of the high widrawal fee but I understand that there is a bep 20 network of ethereum which will make it very possible for people to send out ethereum without so much transaction fee, ever since this there has been a significant increase in the price of ethereum.
 

Putta Vince

Active member
Personally I have given up on investment on Ethereum some months ago because of the high widrawal fee but I understand that there is a bep 20 network of ethereum which will make it very possible for people to send out ethereum without so much transaction fee, ever since this there has been a significant increase in the price of ethereum.
Almost all crypto currencies have the Bep20 network in Binance and Trust wallet. The fees are comparatively lower than the normal transaction fees of any crypto. Same goes with Ethereum as well , and with the introduction of Ethereum 2.0 , the fees have gone down significantly.
 

btaliat

VIP Contributor
Not only people are running away from ethereum but even any coins that uses the same black chain with ethereum. They do see them as plagues that are not to be near. This is because ethereum together with its family coins are so high when it comes to gas fee
 

Sotherefore

VIP Contributor
Almost all crypto currencies have the Bep20 network in Binance and Trust wallet. The fees are comparatively lower than the normal transaction fees of any crypto. Same goes with Ethereum as well , and with the introduction of Ethereum 2.0 , the fees have gone down significantly.
I know that is true and that is why the price of etherum is expected to go up and since this has happened there is a significant and observable growth in the ethereum network. The transaction fee has made a lot of people to run away from cryptocurrency initially
 

Putta Vince

Active member
I know that is true and that is why the price of etherum is expected to go up and since this has happened there is a significant and observable growth in the ethereum network. The transaction fee has made a lot of people to run away from cryptocurrency initially
Yeah , there are even more investors of Ethereum and the price has never gone down anytime in the past year. Even when the transaction fees was high , there were still many investors who pumped the price of Ethereum from $500 to $3000 , I remember those days when BCH was almost equal to Ethereum in terms of it's price.
 

Sotherefore

VIP Contributor
Yeah , there are even more investors of Ethereum and the price has never gone down anytime in the past year. Even when the transaction fees was high , there were still many investors who pumped the price of Ethereum from $500 to $3000 , I remember those days when BCH was almost equal to Ethereum in terms of it's price.
That is cryptocurrency for us and there are sometimes in which potential cryptocurrency can come and take over other cryptocurrency in terms of price, ethereum naturally supposed to be a coin that should have been in it's 10,000 dollars now, I think the higher transaction fee was making a lot of people to run away from it.
 
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