Changing Ethereum [ETH] gas prices and its rippling impact: All you need to know
- Ethereum’s gas prices declined, while interest in Ethereum NFTs waned as well.
- ETH’s price remained unaffected despite the beacon chain mishap.
Ethereum’s [ETH] high gas prices have always been a subject of discussion in the crypto sector. Over the last few days, due to the hype around memecoins, gas prices on the Ethereum network surged.
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However, after the memecoin hype died down, gas fees on Ethereum declined. Over the last few days, the average gas price paid by Ethereum users fell from 155.84 ETH to 77.85 ETH.
How was ETH impacted?
This decline in gas prices could attract more users to the Ethereum network. Inasmuch, an increase in activity was observed.
However, at press time, activity on the Ethereum network declined, as indicated by the low gas usage on the network. Another indicator of low activity was the decline in NFT trades.
The decline in gas prices could thus improve the sentiment around Ethereum. Due to the beacon chain debacle, people’s perception of the protocol has turned negative.
Some bumps in the road
Developers have come out and explained the reasons as to why the issues on the network occurred. According to one of the developers, Potuz, the Ethereum network experienced a 25-minute loss of finality due to several valid but untimely attestations being broadcast. This stressed consensus clients, especially those on weaker hardware, causing them to struggle while following the chain.
To address this issue, Prysm has released a fix that ignores attestations with known old targets to prevent CPU stress and memory bloat. This maintains safety, as the ignored attestations will be processed as soon as the chain is seen.
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These developments didn’t have an immense impact on ETH’s price. In the past few days, ETH’s prices remained relatively stable. The velocity of ETH, during this period, increased, suggesting that the frequency with which ETH was being traded grew.
However, network growth fell, indicating that interest in new addresses in ETH had fallen.