Ethereum’s gas fees have long been a headache, especially during high traffic times. Now Vitalik Buterin, co-founder of Eth, proposes a solution 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 could impact the future of the second largest cryptocurrency.
Ethereum’s gas costs could become cheaper
Vitalik’s plan is all about lowering the cost of Ethereum’s transactions. Right now, gas costs are a big problem, so the goal is to reduce fees for certain operations in the EVM. He proposes reducing gas consumption for operations between 2 and 5 to 1, and for operations between 6 and 10 to 2. Not only that, but logging operations could become almost four times cheaper.
This change could give Ethereum a serious boost, increasing the number of transactions per second (TPS) by up to 1.5 times, without causing problems such as data overload. It’s a smart move, especially with Solana coming soon.
Can Ethereum keep up with Solana?
Solana recently outperformed Eth in terms of daily gas fee revenue. This wave is powered by AI meme coins, such as Goatseus Maximus (GOAT). With Solana gaining attention, Ethereum can’t afford to slow down. Vitalik’s proposal to lower gas rates may be exactly what Ethereum needs to keep up.
But is it enough? Solana is still making great strides and Ethereum must continue to innovate to hold on to its crown in the blockchain space.
Ethereum’s price action
On the technical side, Ethereum was moving in an upward parallel channel and the wave created an upward breakout, which would soon fail. The price took a hit on October 21 after being rejected at $2,773, dragging it down to $2,454. Currently, ETH is around $2,531.
The technical indicators are not giving us bullish vibes for Eth. The MACD has fallen below the signal line and is hovering around -32. Furthermore, the 100 and 200 day moving averages are right above the price, making it difficult for Ethereum to break through. The RSI has also fallen to 31, indicating that the coin is oversold. However, the difference between the RSI and the price movement indicates that we could see a recovery soon.
What to expect
Vitalik’s proposal could be a game-changer if it actually lowers gas rates. Ethereum needs this win to stay competitive, especially now that Solana is pushing hard. If gas prices drop and Ethereum becomes more efficient, it could simply stay in the lead. On the price side, Ethereum could struggle for a while, but there is a possibility of a speedy recovery. So for now we have to wait and see.
