The analytics provider in its Ethereum Gas Report revealed that consistently full blocks are the primary culprit behind rising gas fees. As such, the much anticipated Ethereum Improvement Proposal (EIP)-1559 might do very little to alleviate the current problem.
Since the DeFi boom in mid-2020, blocks on the Ethereum network have remained almost full, with about 95% of block space being used. This value rose to 97%-98% in March 2021, Coin Metrics disclosed.
As per the report, Ethereum transaction fees have stayed above $10 for most of the year. Comparatively, the average gas fee at the heat of the 2017 and 2018 Bull Run was only $5.70.
Coin Metrics admits that Ethereum’s rally to new highs made gas more expensive. However, while the price of the digital asset has risen by 125% to current prices in 2021, the median gas fee has spiked by over 500%.
As reported by BTC PEERS, EIP-1559 will introduce a mechanism that adjusts the current auction process, allowing users to alter gas fees and pay the lowest bid for the block. Coin Metrics opines that the upgrade will only make fees more transparent and predictable rather than solve the root problem.
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Source: Cryptocurrency - investing.com
