The coming of NFTs has contributed to the high demand for Ethereum and this has also led to an increase in gas fees.
Ethereum 2.0 upgrade is aimed at reducing the gas fee of Ethereum and so far, the upgrade seems to be far-fetched.
Many people have been skeptical about venturing into projects built on the Ethereum network because of the high gas fee associated with it, but presently, we have seen a fall in Ethereum gas fees ever since the Ethereum 2.0 campaign.
In a Twitter post, the Founder of Mythos Capital, Ryan Sean Adams posted a screenshot showing Ethereum-based transactions with lower gas fees. The Ethereum founder, Vitalik Buterin assured him that they are working hard to see much lower gas fees on Ethereum.
Can we see the Ethereum gas fee go as low as $0.05?
Before I answer this question, let us go back to how the Binance Smart Chain started. The gas fee on Binance Smart Chain used to be as low as 0.02$. With the in-flow of projects especially shitcoins and NFT projects, there was a rise in the demand for BNB which also increased the gas fee associated with transactions on its chain. Today, we pay up to $1.12 on the Binance Smart Chain network and the transactions are not as fast as they used to be. You might argue that $1.12 is a low fee but the point here is that the gas fee will always increase with increase in transactions on any blockchain. Give Polygon, Solana, and FTM a large audience and you will see an increase in gas fees for their transactions.
Back to Ethereum, Ethereum has the highest TVL, and most of the popular NFT projects are on its network. The lower gas fee we enjoy presently is not mostly from the ongoing upgrade but also to the fact that fewer transactions take place these days due to the dip in the market.
I do not argue that Ethereum 2.0 will reduce gas fees used for transactions because we have already started seeing it. My point is that the volume of transactions will play a huge role in determining the price range of gas fees than the technologies behind the network.
Today, we don't easily see Binance smart chain transactions with fees around $0.05, how achievable can this be for a network like Ethereum with huge transaction demand from several projects built on its environment.
