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High Ethereum Gas Fees May be Brought Down with Optimism Update

Optimism is bringing the native Ethereum development stack to its layer-2 protocol making its platform more developer-friendly.

Optimism is launching a major update to its protocol on Thursday, November 11. It might bring down the skyrocketing Ethereum gas fees. 

The layer-2 rollups developer is hailing the current update as the “biggest upgrade” in its history. 

The Optimism Update Brings EVM Equivalence

The new update plans to bring EVM Equivalence which the company calls the “gold standard for L2s.”

EVM Equivalence means “that — down to the very deepest depths — the existing Ethereum stack will now integrate with the L2 system, too” by enforcing the Ethereum Yellow Paper precisely.

It would scale the Ethereum network more by making Optimism’s solutions more developer-friendly. Developers will not have to make as many changes as they do currently in their code and can deploy on Optimism faster.

Rising Gas Fees on Ethereum

The average gas price stood at more than 173 Gwei on Wednesday, which is a bit high, as per the Ethereum Gas Price chart.

According to a Coin Metrics report, the Daily Active Addresses have averaged 650 Thousand over the last week.

Even after adjusting for the rise in ETH’s price in USD terms, gas fees is still increasing in native units of Gwei. 

The report says that NFT activity is not likely the main driver of the gas fees. The daily ERC-721 transfers averaged 67 Thousand last week, significantly lower than the peak of 220 Thousand recorded in September.

DEX trading might be the culprit. Daily Uniswap activity has increased in the past few weeks. The recent surge is due to the memecoin mania, especially Shiba Inu (SHIB), which is an ERC-20 token on Ethereum.

Source: Coin Metrics

Moreover, since the deployment of EIP-1559, 800 Thousand ETH have been burnt, 40% of the roughly 2 million ETH issued in that period. It may also be a contributing factor to the rising gas fees.

At the time of writing ETH was trading at around 4676 USDT on Binance.

As more people adopt Web3 applications, networks will congest more. That’s why it is imperative to bring more scalability solutions to keep growing the infrastructure to meet the rising demand of Decentralized Applications and the users.

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