The bear market has already shown its signals. Ethereum’s gas fee has fallen to a new low in years. The crypto-kitty event brought the gas fees issues on the table. DeFi further exacerbated the same. However, the latest bear market has left everything to thaw for a while.
Why are Gas Fees Falling?
Market Cool Down
DeFi, NFTs and Metaverse have gone for a toss in the bear market. Hence, people have literally stopped using ETH to pay for the transcations. The EIP 1559 hard fork has further disincentivized miners. At the same time, ETH 2.0 upgrade has made mining literally impossible on the Ethereum Network making everything go haywire for miners.
ETH Killers Rise
The rhetoric “ETH killers” has hampered Ethereum’s market dominance. Solana emerged as the best ecosystem for NFTs. At the same time, Cardano has been promising a more decentralized ecosystem to the developers. At the same time, Cardano is also allowing customized building allowing developers to take a giant sprint towards developing the ecosystem. All of these combined has made ETH suffer in the long run.
Delays in Launch
Last but not the least, launch delays have further hurt the prospect of ETH in the long run. Users are preferring layer 2’s instead of the base layer. Some of the projects even want to stay back to layer 2’s despite ETH2.0 releasing anytime soon. All of these has made mining non profitable and hurt the ecosystem.
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