Ethereum and Transaction Fee

Ethereum is the top altcoin that we all know and after bitcoin its the first coin on basis of its market cap. It has shown significant growth in the last 1 year. It was less than 500 USD and now it went up to the mark of 5k USD almost. This surely shows that this holds a bright future and with upcoming eth 2.0 things can be way better. Ethereum staking is helping to get a huge number of ETH getting staked and this is also one of th reasons why the price is growing because demand is more than supply and its a simple formula that applies here for coin price determination.

src

While we like its price growth and those holding ETH (purchased at a lower price) must be happy but its transaction fee is something that most of us don't like. ETH price is also expected that it can think 10k USD mark in 2022 but what about the fee? Its insane these days and because of this crazy fee a major chunk of users avoid using etherum smart contracts because sometimes transaction fee is higher than the value and in this situation its not a good idea to transact. With the EIP-1559 update, it was expected that the transaction fee will go down but it did not happen and now its expected that only ETH 2.0 will solve this problem.

Eth2 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable. These upgrades are being built by multiple teams from across the Ethereum ecosystem.

As of date, Ethereum is the leading platform where thousands of dapps and projects are running, and because it runs smart contracts smoothly so this makes it a replicable blockchain platform. Although there are some more names that offer dapps and smart contact and tron is also the kind of same and even somewhere Solana is going to offer the same. But Ethereum has its own credibility and despite higher transaction fees many projects are still running there and even new ones are starting up with the Ethereum network.

ETH had been trading in an uptrend and last week the prices touched the new all-time high of $4,864.9. However, the asset witnessed minor profit booking at the higher levels.

I hold some ETH and that also I keep on staking which is helping me earn a good amount of income in form of ETH only so I am very happy with the price appreciation. But its transaction fee is something that I am not ok with and I have certain tokens to claim on its network but am not able to do so because the fee is much more than its value. I have been waiting for its fee to reduce but unfortunately, it did not happen. For small use like me, this is very important to check the fee and maybe people who hold huge amounts of ETH can be ok with this high fee.

src

I am looking forward to the day when ethereum founder Vitalik does something to reduce the fee so that more people holding small values can transact easily. I know that it will take a bit long but I hope to see it happening in the year 2022.

Thank you so much

Stay Safe