Ethereum’s gas fees have been a headache for a long time, especially during high traffic. Now, Vitalik Buterin, Eth’s co-founder, is suggesting a fix to make transactions faster and cheaper. But can these changes really help Ethereum stay ahead of competitors like Solana? Let’s take a closer look at what this means for the blockchain world and how it might impact the future of second biggest crypto.
Ethereum’s Gas Fees Could Get Cheaper
Vitalik’s plan is all about lowering the cost of Ethereum’s transactions. Right now, gas fees are a big issue, so the goal is to reduce the fees for certain operations in the EVM. He suggests lowering gas for operations between the 2-5 range down to 1, and for those between 6-10 down to 2. Not only that, but log operations could also become nearly four times cheaper.
This change could give Ethereum a serious boost, increasing its Transactions Per Second (TPS) by up to 1.5 times without causing issues like too much data build-up. It’s a smart move, especially with Solana coming up fast.
Can Ethereum Keep Up with Solana?
Solana has recently outperformed Eth in daily gas fee revenue. This surge has been powered by AI meme coins, like Goatseus Maximus (GOAT). With Solana grabbing attention, Ethereum can’t afford to slow down. Vitalik’s proposal to cut gas fees might be just what Ethereum needs to keep up.
But is it enough? Solana is still making big moves, and Ethereum needs to keep innovating to hold onto its crown in the blockchain space.
Ethereum’s Price Action
On the technical side, Ethereum has been moving in an upwards parallel channel and surge gave an upward breakout, soon to be failed. The price took a hit on October 21 after being rejected at $2,773, dragging it down to $2,454. Right now, ETH is sitting around $2,531.
The technical indicators are not giving our bullish vibes for Eth. The MACD has dropped below the signal line, hovering around -32. Additionally, the 100-day and 200-day moving averages are right above the price, making it hard for Ethereum to break through. The RSI is also down at 31, suggesting the coin is oversold. However, the divergence between the RSI and price movement hints that we could see a rebound soon.
What to Expect
Vitalik’s proposal could be a game-changer if it actually lowers gas fees. Ethereum needs this win to stay competitive, especially with Solana pushing hard. If the gas fees drop and Ethereum becomes more efficient, it might just stay in the lead. On the price side, Ethereum could struggle for a bit, but there is a possibility of recovery soon. So, it’s a wait-and-see game for now.
