THE FUTURE OF #ETH

Look at the current gas fee of Ethereum - a The Queen of the crypto market has dropped to the lowest level in the past 5 years.

Since The Merge switched from PoW -> PoS, everything with ETH has been gloomy and even more gloomy.

Including the Dencun Upgrade supporting L2 and the large number of L2s compared to the present, it has also indirectly pushed the fee down to a low level continuously throughout the past time.

It is true that there are many L2s, but it is not certain that all L2s have many users and are continuously active, for example, the current top L2s can be counted on the fingers.

To explain more clearly, I have 3 ideas to share with you:

1/ Gas fee decreases

When the gas fee on the Ethereum network drops to a low level, less ETH is burned.

The EIP-1559 mechanism is responsible for this part where a portion of the transaction fee (called "base fee") will be burned.

When transaction fees are low, the number of $ETH burned decreases, resulting in less $ETH being removed from circulation.

2/ ETH Supply Increases

When less ETH is burned than new ETH is issued through staking in the PoS mechanism, the total ETH supply increases.

3/ Layer 2

It is obvious that Base and Arb have helped reduce the load on the Ethereum mainnet, reducing congestion and lowering gas fees.