Did the expansion take away the buzz of ethereum? After the silence comes the explosion

Gas fees for transactions on the Etherchain have been drastically reduced.

Recently, with the low crypto market sentiment and the development of sidechains such as Matic and BSC, the Gas fee for on-chain transactions on Ether has been significantly reduced and has remained around 10Gwei for many days, and even as low as 5Gwei during inactive hours.

The last time the on-chain Gas fee on Ether was consistently at this level was in July 2020, before the DeFi market exploded. At that time, the price of ETH was still maintained at around $400.

Did the expansion take away the buzz of ethereum? After the silence comes the explosion

The average transaction fee for Ether has also dropped to $3.80, a 2021 low, while the price of ETH has risen as much as four times compared to the beginning of 2021.

Did the expansion take away the buzz of ethereum? After the silence comes the explosion

Halfway through June, miners’ transaction fee revenue fell sharply to just $92 million, a precipitous drop compared to June’s whopping $1 billion in fee revenue.

Did the expansion take away the buzz of ethereum? After the silence comes the explosion

Such a situation may become the norm in the future, with the gradual landing of Ether Layer2, more and more transactions will be moved from Ether to these Layer2.

But miners need not worry that their income will be reduced as a result. The scaling of Ether is a problem that must be solved to introduce more application scenarios, and the enterprises that will employ Ether as a platform can increase significantly after the performance is improved.

Linda Xie, co-founder of Scalar Capital, recently wrote about the potential of Ether.

“While many in the tech world have heard of Bitcoin, cryptocurrencies and the concept of blockchain, smart contracts are less well known, which is a major innovation for Ether. Anyone can write smart contracts and deploy them to the public chain, enabling all kinds of innovations. Popular concepts like NFTs, DeFi, and DAO – which represent new ways to determine property rights to something, better financial systems for people, and new ways to collaborate and cooperate, respectively – are all driven by smart contracts.”

“Non-cryptocurrency businesses can improve efficiency and extend more functionality by introducing open ecosystems like Ether, much like the API economy, which can enable all types of companies, including mom-and-pop stores and small businesses, to access data and capabilities they otherwise wouldn’t have access to. In the tech space, a case in point is Reddit’s experimentation with community points, tokens that reward users for posting high-quality content that can be redeemed for unique items within the community. reddit plans to roll out community points in the form of ERC-20 tokens, which will allow them to be used in existing ethereum wallets and apps. This expands more functionality for community points, but Reddit won’t need to recreate them on its own. Even if it’s not a cryptocurrency company, it can get the benefits of a cryptocurrency app for its users, such as the ability for Reddit users to use a decentralized exchange on Ether to exchange their points for other tokens. This will make their points liquid from the start. At the same time, once the Ether ecosystem is introduced, everyone can incorporate community points into their projects, thus creating more use cases on top of that.”

As an open and license-free development platform, every exchange and collision between traditional industries and blockchain may bring meaningful and revolutionary innovation to Ether, and ETH, as a pass for paying computing, storage and other resources on this platform, it will be given higher value as the ecology grows.

The current reduction of Ether transaction fee income is a good time for miners with strength to expand their mining income. Miners with higher costs will quit mining at such times for economic reasons, while strong miners can earn more income.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/did-the-expansion-take-away-the-buzz-of-ethereum-after-the-silence-comes-the-explosion/
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