The Ethereum network activity level has, in recent days, slumped, easing Gas. Consequently, Bitstamp, one of the largest cryptocurrency exchanges, is slashing ETH withdrawal fees by 30 percent, a statement on July 14 reads.
Bitstamp Slashes ETH Withdrawal Fees by 30%
In the better part of H1 2021, exchanges across the board had to readjust their respective withdrawal fees in response to the high cost of transacting on-chain.
Bitstamp was no exception. However, they are now reducing fees to reflect the state of the Ethereum mainnet.
“The Ethereum network congestion is no longer as severe as was, and because we’re always keeping your best interest and wallets in mind, we’re further decreasing our withdrawal fees. We’re cutting them by 30 percent! The fee now stands at 0.0035 ETH per withdrawal.”
Vitalik Intervention Coincided with Gas Fees Peak
The rise of DeFi and the hysteria, especially around meme coins keen on aping Dogecoin’s success, pushed Ethereum to the wall, forcing Gas fees to unreasonable levels, crashing user experience.
Vitalik Buterin rugged several projects, block selling, and crashing prices to rectify the situation and pop the meme coin bubble.
The resulting carnage coincided with Gas fees peaking as DeFi also slowed down to spot rates.
Overly, Ethereum has incorporated several measures to keep Gas fees low.
Beyond the hard tackles, Vitalik pulled, network developers also increased the total gas block limit to 15 million. This allowed miners to pack more transactions in a single block, helping tame Gas fees.
The Drive for Layer-2
At the same time, Ethereum developers are drumming up support for Layer-2.
Already, several solutions such as ZK-Rollups, implemented by Layer-2 DEXes like Loopring, are active, re-routing transactions off-chain.
Uniswap, as per recent reports, has also adopted Optimism—a Layer-2 option that most “heavy” DeFi dApps, are likely to adopt.
Swaps on Optimism are nearly instant and cost significantly less gas fees!
— Gamma (@GammaStrategies) July 13, 2021
Besides, Arbitrum plans to go live.
Layer-2 is the immediate concern for Ethereum developers.
It would be central to the project’s drive to make the network comparatively cheap to transact from and scalable to handle intensive dApps which deploy complex smart contracts.
In all, Layer-2 will also be part of Eth2 with a Proof-of-Stake consensus algorithm and Sharding.
The Gas Predictability Hopes after the London Upgrade
In the immediate term, efforts to also tame Ethereum miners were blamed for rapid Gas fees, inconveniencing network users through the London upgrade scheduled for August 4, 2021.
The hard fork, as BTCManager reports, will make Gas fees more predictable while also introducing BASE FEE burning, making ETH deflationary.