It has been three weeks since the introduction of the London hard fork and the EIP-1559 upgrade. It looks like the Ethereum transaction fees are now more predictable than intended.
The Ethereum developers performed the London upgrade and the EIP-1559 upgrade on August 5, 2021. The way transaction fees are calculated has been different since then. In addition, part of the ETH that is paid for the transaction fees is burned, ie destroyed forever. With the upgrade, the developers intend to reduce transaction costs and make them more predictable.
The Ethereum solutions provider ConsenSys said:
“The EIP-1559 could lead to some reduction in gas prices if we assume that the predictability of charges means that users are less likely to overpay for gas.”
Are Stable Ethereum Transaction Fees a Good Thing?
On the chart posted by Ethereum subreddit member fran_costello, you can see how the costs of Ethereum transactions have stabilized. They are much less volatile.
Before the upgrade, gas prices ranged between 20 and 100 Gwei. The variance was much greater before the London upgrade and the level of the fees was much more unstable.
The Reddit post also states that the upgrade did not result in lower transaction fees (which can be seen from the increase over the past week). However, the upgrade offers users more security that the transaction will actually be included in the new block once the minimum fee has been paid.
Reddit user Tenoke said that wasn’t necessarily a good thing because before the EIP-1159 upgrade there were more ways to pay less than 20 Gwei for a transaction. Many Ethereum users prefer to wait longer in order to save the transaction costs. Tenoke wrote:
“Like it or not, one of the main features of the EIP-1559 upgrade is that part of the miners’ profits is now indirectly passed on to the whales via burning.”
We previously reported that the rise in transaction fees resulted in more than 100,000 ETH being burned.
ETH price update
At the time of publication, the Ethereum price was around $ 3,250, according to Coingecko. The closest resistance is currently around $ 3300. There’s also strong support at $ 3,000.
The Ethereum price could increase by 36% over the last month. However, the Ethereum price is currently still 28.5% away from the last all-time high (4357 USD) on May 12, 2021.
Translated by Maximilian M.
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