- Visa aims to make Ethereum transactions easier with its new solution.
- ETH has reportedly settled 33 trillion worth of transactions as compared to Visa’s 11 million.
Ethereum gas fees have been quite controversial in the past but the network has been making efforts to make it easier for its users. The latest effort surprisingly comes from global payments processor, Visa.
Read Ethereum’s [ETH] price prediction 2023-24
Ethereum users will reportedly be able to use their Visa cards to pay for gas fees. Paying for gas fees on the Ethereum network has some complications such as having to fund your account with ETH. In addition, fluctuating ETH prices add to the complexities of facilitating transactions on the network.
1/ ? @Visa is making major moves to simplify #blockchain transactions. Their latest experiment? Paying on-chain gas fees with a Visa card. The aim: to cut down on the complexity of managing #ETH balances for fees. ? #VisaCrypto
via @akibablade https://t.co/EdjI2suUs9
— CryptoSlate (@CryptoSlate) August 11, 2023
Visa plans to help ease those challenges through its Cybersource network to facilitate direct off-chain gas fee payments. Users will not need to hold ETH for gas fee payments. It will instead send a digital signature to the user’s wallet for payment approval.
If you can’t beat them, join them
Visa’s new solution highlights its efforts toward becoming more entrenched in blockchain payments. Ethereum represents the ideal route thanks to its widespread adoption.
Visa’s interest in Ethereum is not surprising. The blockchain network has reportedly settled more than $33 trillion worth of transactions. Meanwhile, Visa has so far settled $11.6 million worth of transactions despite being older.
Ethereum has already settled over $33.4T+ On-Chain since genesis. Stablecoin accounts for more than 50% of the volume
Compared to Visa, it has processed $11.6T Payment volume and Ethereum settled $12T total volume in 2022 https://t.co/jUM4BeQvmQ pic.twitter.com/qNo1UOaT3r
— Tom Wan (@tomwanhh) August 8, 2023
The transaction figures underscore the robust growth that the Ethereum network has achieved. It is not surprising that Visa was a piece of the pie, hence its involvement. Although Visa’s new solution represents a significant step in improving transactions, a recent IntoTheBlock analysis reveals that Ethereum fees have been declining.
Ethereum fees have dropped significantly this week by 21.2%, reaching a two-month low. This decline coincides with a period of stagnating volatility.#ETH pic.twitter.com/jgk23bbv1v
— IntoTheBlock (@intotheblock) August 11, 2023
A potentially major reason behind the decline is the fact that the market has been in a slow phase for the last few weeks. This phase is underscored by fewer network transactions. However, on-chain data revealed that Ethereum maintained decent activity despite the market slowdown.
According to Glassnsode metrics, Ethereum’s gas used metric has improved considerably in the last four weeks. It bottomed out at 106.8 billion ETH on 15 July and stood at 107.79 billion ETH as of 10 August.
Source: Glassnode
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Ethereum’s transaction count was lowest on 16 July (within the last four weeks) at 917,146 transactions. It was highest two days later at 1.4 million transactions and the latest readings reveal that it averaged slightly over 1 million transactions on 10 August. For comparison, its highest single-day transactions peaked at 1.9 million transactions.
