Don't Know What Gas Fee Is?
Ethereum runs on a fuel to support its operation by making it effective and fast. Ethereum gas fee is a unit of measurement, it is required as a computational power for execution of certain operations on Ethereum blockchain.
While the excitement for pumps in Crypto-sphere is running trends wild, Ethereum's pump equate to an equal pump in gas fee. Ethereum has been known to have a rather expensive fuel price to perform a transaction. Ethereum transaction hit an All TIME HIGH (ATH) early September as miners earned over $500,000 as transaction fees in an Hour, Crazy right.
Yesterday marked a new price cap for Ethereum, the race to $1,000 has been reached today and that has brought a lot of advantages to miners, holders and even other ether network tokens. But notwithstanding, Ethereum's bastard Alt Season preparation yields a crazy amount of gas fee input.
The chart above shows Ethereum total gas fee as at Sunday Jun 03 2021 UTC. The chart shows a figure of 8,456.54193922 ETH as gas fee while ethereum price peaked at $988.22.
If my calculations are right as presented above, 8,456.54193922 × 988.22 equals a total of $8365993.0955, that's stupidly huge. Like I mentioned in the past that Ethereum has a crazy gas fee that makes it discouraging for me to purchase, now this is proof that Ethereum sucks bloody money every single day. If you're still in doubt of how huge this is, let's relate it to Bitcoin that is worth 33k times the value of Ethereum.
From this chart above, glassnode displays 92.1061689 BTC as a transaction fee at sun 03 Jun 2021 UTC, that's the exact same time as the previous chart. Let's do a bit of math and calculate the difference. 92.1061689 × 32,031.62 which is the price of Bitcoin as at that time. That equals $2950309.8019 as shown below.
Now to derive the difference: ETH- 8365993.0955 × 2950309.8019 BTC and that gives us : $5415683. 2936. This proves that Ethereum miners yield a profit of $5415683.2936 more than bitcoin in gas fee. The future from here is crazy, imagine Ethereum at $33k as Bitcoin is, holders would have to be as rich as hell to pay the transaction fees that will be required. Despite Bitcoin overvalued price, Ethereum shows more positivity in generating more money by any means. We saw that yesterday, Ethereum pump boosted more Altcoins than Bitcoin ever did. These figures will keep increasing as time goes on.
-Ethereum Hits $1,000, Gas fee rises, Investors at expense to transact lower priced ether tokens
The pump was more of a curse than a blessing. Yes I know what I just said and you can agree with me in a minute, it is not funny at all to make a transaction of 1 cent and pay over $15. Ethereum as we all know have so many projects built under it's support, so every activity therein is paid to Ethereum network. If it costs me $7 to transfer the lowest unit of Ethereum, how much more a transaction of an ether network token that is not even worth $0.5, the figure will be extremely high. The constant pump in Ethereum equals higher gas fee and this would much likely cause depression in people desiring to build an ether network token in the nearest future, reason being that no one will be willing to pay such a high fee for a project as new that it's growth is not yet certain. The more Ethereum pumps the more expense we add up.
This is not financial advice, just my observation from the past months on Ethereum network and tokens.
Thank you for Stopping by, feel free to contribute in comments.
Signed badbitch
All charts are obtained from glass node
