Ethereum Rising Gas Fees are Still Concerning But Presents Opportunity For Decentralized Exchanges

Paying gas fees is a crucial component of exchanging crypto and mining digital assets yet remains a significant cost barrier for transactions. A prime example is the major cryptocurrency Ethereum, whose network incurs inherently high gas fees due to its high volume of transactions and token evaluation. The term gas is used to define the amount of Ether (ETH) needed to perform a specific transaction allowing users to interact with the network. These fees are used to compensate miners for the energy required to verify a transaction. The gas price is highly volatile and dependent on a multitude of factors. The primary factor that represents gas fee price fluctuation is transaction congestion. As stated by Coin Market Cap, “There is so much movement on the Ethereum chain that the blocks are full, and transaction fees shoot up with each rise in demand.” According to specialists, the transaction volume can raise the gas fee from $5 to 50$ in seconds. Also, another critical driven force is the token market price. Ethereum investments have risen significantly since its inception in 2015. Within an astonishing period, its value grew from around US$0.31 to around US$4,800 (ATH) in November 2021. With the imminent release of ETH 2.0, which will replace the Proof Of Work model with the Proof Of Stake mechanism, Ethereum may have a prosperous future, but investors are still skeptical about further investing in Ethereum after th...