After the implementation of EIP-1559, why didn't Gas prices drop significantly?

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Shortly after the implementation of EIP-1559, the Ethereum network saw a significant spike in transaction fees. According to Gas Now data, around 1:00 AM on August 6th, under the "Fast" setting, the Gas price peaked at 264 gwei.

Original Title: " Nearly 4000 ETH Burned by EIP-1559 Leading to Soaring Network Fees? Here Are Five Reasons "

Original Author: Kyle, The DeFi Way

On August 5th at 8:30 PM, the Ethereum mainnet reached the specified block height of 12,965,000, marking the official launch of the London hard fork upgrade, with five EIPs activated, including: EIP-1559, EIP-3198, EIP-3529, EIP-3541, and EIP-3554.

Particularly, EIP-1559 is the focus of attention, as this proposal introduces the base fee, a portion of which will not be awarded to miners but will be burned directly.

As of 1:30 PM on August 6th, according to data from Ultrsound.money, in the past 17 hours, EIP-1559 has already driven the burning of 3,841.57 ETH. Although Ethereum has not yet entered a deflationary state, this has significantly reduced the new issuance.

Shortly after the implementation of EIP-1559, the Ethereum network transaction cost experienced a significant short-term surge. According to Gas Now data, around 1 AM on August 6th, under the "fast" standard, the Gas price peaked at 264 gwei.

Why did the Gas price (base fee) suddenly spike? Why are user tips higher than 2 gwei?

Ethereum Foundation's ecosystem personnel trent.eth responded on Twitter:

Why Is the Base Fee So High

1. There are some large-scale NFT airdrops in progress, causing network congestion.

2. Many services (such as exchanges) have disabled some functions during the network upgrade. Once these platforms are satisfied with the upgraded blockchain's stability, they will release this pent-up demand.

3. Some miners have set the gas limit to less than 30 million, only allowing about 13.5 million gas to be used. In contrast, the gas limit before the upgrade was 15 million → reduced available block space → decreased throughput.

4. Users are trying out the new EIP 1559 feature: sending a large number of transactions, sending their first burn transaction.

Why Is the priorityFee Higher Than 2 Gwei

5. Various wallet interfaces (APIs) are still being rolled out. Most people haven't even sent the new transaction type → can't adjust the priorityFee. Note: The fee is an additional fee users can pay to miners for faster confirmation of their transactions.

These APIs need time to adjust their algorithms to provide recommended priorityFee—many wallets are still in observation mode and making adjustments.