With the price of Ethereum (ETH) starting to slowly recover after a rough week for the entire cryptocurrency market, more positive indicators of its future are emerging, with some experts particularly bullish on digital assets -- given the rising price of gasoline, the fee for Ethereum.
A few days ago, after the founders of BAYC launched their "Otherside" metasomes NFT mint on Ethereum, transaction fees on Ethereum soared to an all-time high, and as the minting boom grew, a large number of transactions failed, while at the same time, Ether, the second-largest cryptocurrency by market value, has long grappled with criticism of its high transaction fees.
Ethereum transaction fees soared
Blockchain co-founders talk about transaction fees for Taifang
Blockchain co-founder Vitalik Buterin himself acknowledges that high fees remain a major challenge for digital assets, posing a threat to the vision of creating a decentralized economy, especially in use cases beyond those that have recently dominated financial applications.
In response to a screenshot by "No Bank" podcast host Ryan Sean Adams showing the average transaction fees for the eight Ethereum L2 platforms, Buterin also said that the cost of sending ETH and exchanging tokens would have to be less than $0.05 to be "really acceptable."
Buterin said fees are likely to fall after the merger in the second half of the year, marking the network's formal transition from resource-intensive proof of work (PoW) to proof of stake (PoS) to protect itself. So consolidation should lead to cheaper, faster and more energy-efficient deals.
Ethereum price analysis
Although the Otherside NFT foundry frenzy over the weekend caused the Ethereum network to destroy more ETH than it issued. But not all of Otherside Mint's consequences have been bad for everyone:
Burning benefits ethereum holders because it reduces supply. Traditionally, a reduction in the supply of assets leads to an increase in demand, which usually leads to higher prices.
As it stands now, crypto trading expert Michael van der Poppe has also observed that Ethereum could rebound as prices rise. Today, he tweeted a chart showing the rise in ethereum prices based on an analysis of his previous behavior.
Ethereum's price has risen today, trading at $2,844 at the time of publication, according to the Cryptzh global index, though the trend could change after the Fed hikes in the coming hours.