Ethereum fees are lower than we've see in quite some time.

Something I've noticed recently is that the gas fees, or transaction fees, on the Ethereum blockchain have come down drastically. This is likely due o the bear market, because you would think that there's less people using the blockchain. Maybe this is true, maybe it isn't... There's just less transactions which makes the fees go down. Within the past year we saw insane fees on Ethereum ranging from $50 to $5,000.

Honestly, I had completely stopped using Ethereum for anything other than just holding assets I already had on the chain. I've been using Polygon, BNB Chain, and many other much cheaper and faster chains just because it's more accessible. I don't necessarily want to pay $50 worth of ETH just to do a swap from one token to another on a decentralized exchange.

With all that being said, I had a lot of different tokens staked in different platforms on Ethereum. The key word is had. I took advantage of low gas fees recently and started moving around my assets. Don't get me wrong, I'm a huge fan of the Ethereum blockchain and honestly think it's going to become the default again when the merge happens.

Co-founder Vitalik Buterin said himself, that transaction fees more than a few cents on blockchains would never work.

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Being that gas fees are at extreme lows and the price of ETH has gone up 50% in 7 days... I'd say things are looking very healthy. Also I'm terrible at trading, so please don't take this as financial advice. I just see it as more sustainable, organic growth because those crazy skyrockets never last. The slow build that doesn't make the chain too expensive to use is what really counts right now.

The Ethereum blockchain as it exists now is not scalable enoughf for 7 billion people to use. Transactions would backlog, and people would burn ETH for transactions that never go through due to rising gas prices. Once the merge happens, which is supposedly going to happen in September unless a major bug prevents it... Should really drive a lot of users back from the layer 2 solutions and different chains.

I think so many people got priced out of interacting with the Ethereum blockchain that some may take a long time to return. Those like me, though, that have been around since 2016 remember how cheap and fast the Ethereum blockchain was. Obviously it has improved vastly, and will become exponentially more scalable with the switch from proof of work to proof of stake.

It really excites me and has gotten me back into interacting with dapps on the main Ethereum chain more. I was able to send some ETH to pay for a purchase for a gas fee of about 13 cents yesterday. About a year ago, I spent $200 to mint an NFT. I did a DeFi transaction for about $4 too. A year ago, it would have cost $50+.

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No one wants to spend money to transact, but the users understand that they have to pay to have their transaction processed. It's more about keeping that cost low while maintaining the security and scalability of the blockchain. Ethereum has the potential to take blockchain technology to a whole different level with the proof of stake merge. It's something that's never been done before and will be very impressive if pulled off flawlessly.

I have a feeling a lot of these layer 2 scaling solutions for Ethereum are going to become irrelevant. Some will live on and continue like Polygon and other more widely used chains. The smaller ones though, will likely lost a lot of users to the main Ethereum chain once we see the upgrade happen. My advice is - go ahead and take advantage of the low gas fees now. They will likely rise again.

Article written by: @l337m45732 AKA 0xNifty.nft

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