Ethereum gas fees: too low or too high? The debate continues.

Ethereum’s gas fees have always been a hot topic. This year, they’ve dropped significantly, thanks to rollups—except during the August 4-5 crash, when fees spiked dramatically. So, which is it? Too low or too high?

Surprisingly, everything worked as it should. Periodic spikes are exactly what you'd expect in a market driven by peak demand. Those who see these fluctuations as a problem might not fully understand the future of crypto.

Here’s the deal: blockchains aren’t just networks that process transactions—they’re providers of a scarce asset called secure block space. Like any limited resource, this block space is auctioned off to the highest bidder, whether it’s a whale or a layer-2 solution.

Monolithic chains, which try to serve everyone equally, face an impossible task. In critical financial transactions, predictability and security are non-negotiable. Just like you wouldn’t pay the same price to send a postcard as you would for an overnight package, blockchain services need tiered pricing to function efficiently.

On modular chains, it’s a different story. Users still on L1 are there for maximum security, often for large transactions where high gas fees are just a drop in the bucket. Meanwhile, rollups and other wholesale players can absorb fee spikes, maintaining their profit margins during quieter periods.

As the market matures, especially with rollups, we’ll likely see fees become more predictable and less of a concern for retail users. In fact, some platforms are already absorbing or reducing gas fees to improve the user experience, a trend we expect to continue.

The bottom line? Ethereum’s gas fees might seem unpredictable, but they’re part of a system that’s evolving to meet the needs of a growing, diverse user base.

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