🚀 Ethereum Gas Fee Dives, Here Are the Reasons Behind It!
📉 Recently, Ethereum Gas Fee has been declining from the peak of 83.1 gwei in March, with a drop of more than 95%! There are two main reasons behind this.
🔄 First, after the Dencun network upgrade, the sidechain is smoother to use and the transaction fee is lower, so many transactions are diverted to the sidechain. Therefore, the usage of the Ethereum mainnet mainchain has decreased.
🌐 Secondly, the Memecoin craze has caused some transactions that might have been on Ethereum to shift to other fast and low-cost blockchains. In particular, the Memecoin projects on the Solana chain have been hyped up one after another, attracting a lot of funds and hot money, leading to an increase in speculative properties on other chains.
🤔 Although these factors have caused Ethereum gas fees to plunge, and the market has also raised some doubts about the future prospects of Ethereum, there are also views that with the recent accumulation of Ethereum spot ETF trading volume, I believe that time will prove that Ethereum will still be a good choice!
📊From historical experience, whenever the altcoin season comes, many new investors are attracted by high returns and tend to invest in outstanding altcoins, while ignoring the long-term value of Bitcoin and Ethereum.
🌪️Therefore, new investors may not have experienced the drastic fluctuations in the market, and they don’t know that the altcoins they invest in may face a 99% flash crash risk at any time!
🛡️ However, only industry practitioners who have experienced several rounds of bull and bear cycles value the stability and security of Bitcoin and Ethereum, as well as their leading position in market applications!
💬 So, is it a good time to increase ETH positions? How should new investors balance their dependence on altcoins with the choice of stable and secure assets? Welcome to share your views in the comment area!
