It not business as usual for the ETH lover as the current Ethereum exorbitant gas fee is set to stay a little longer. This has become a reality after the platform developers said there is not solution in the near future. The discussion was centered on how to alleviate the run-away gas cost.
Traders have been at crossroads and cannot exit the platform due to the high fee. This has come out clearly in the last one week and might continue longer than expected. All eyes now are on the Ethereum Improvement Programs (EIPs) team to see how they how they can resolve the high gas fee.
Ethereum Exorbitant Gas Fee Not New
In 20818 Ethereum had the same high gas fee which saw CryptoKitties almost break the network. The entry of decentralized finance (DeFi) has seen the network again experience congestion and gas fee skyrocketing. The problem appears to be back and transactions are getting stuck for hours.
For Ethereum, DeFi came too early and could not wait for 2.0 expected to usher in the proof-of-stake consensus era. The network has been overwhelmed by DeFi Apps, Yield Farming dApps and other gaming projects. This has seen gas fee rise to $15 to execute a smart contract being recorded in the ecosystem.
Wake up Call in Ethereum Exorbitant Gas Fee
The Ethereum Exorbitant Gas Fee is just a wakeup call and there are a number of EIPs that are being put in place to lower the fees. This is part of the platform’s long term goal that should be able to transform Ethereum to a platform of the future.
An independent blockchain researcher specializing on Ethereum Alexey Akhunov blames the problem on gas pegged tokens which are making the price to head abnormally north.
Ethereum’s mempool is cluttered with several transactions which automatically bid a certain gas price to mint new tokens, similar to a strategy used by centralized exchanges to fill their order book for influencing traders.
The researcher goes on to add:
While orders can be canceled repeatedly at no cost on centralized exchanges, they, by design, cannot on the Ethereum network and hence lead to ever-increasing Gas prices.
