The data on the chain tells you, has the London upgrade solved the Gas problem of Ethereum?

Original title: "Did the London Upgrade Fix Ethereum』s Gas Fee Problem?"

Original source: Footprint Analytics

Original compilation: Bitui

As NFT  Chains are scrambling to go online for their pain points.

Ethereum’s current market share has dropped below 60%, but we have to admit that there are many excellent The first choice for projects online is still Ethereum, and the price of Gas fees is closely related to every user.

The upgrade in London in August changed the charging structure of gas fees, and the parties have continued to discuss. Next, this article will also use the data of Footprint Analytics  to look back at the performance of Gas fees in the past six months after the upgrade.

Gas prices generally have no obvious trend changes

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London upgrade is not to solve scalability, so from the average gas fee price and base fee price Look, there has been no significant trend change in the last 6 months.

What it changes is the fee structure, dividing the original fee into basic fee and priority fee. The base fee will be destroyed, and all miners can get is the priority fee. The gas price will increase or decrease according to the utilization of the last block, which makes the cost of user expenditure more predictable, thereby reducing the waste caused by paying too much gas.

  Footprint Analytics –  Avg Gas Price vs Avg Base Fee per Gas

You can see after going online The fees paid by users are still based on basic fees, and the priority fees for miners only account for about 15%. Some time priority fees account for more than 50% of the price, but the overall priority fee payment is relatively stable.

  Footprint Analytics – Gas Fee VS Priority Fee

 Median gas price shifted to the left

For users, they pay more attention to the cost of the whole payment. Although the gas fee has not decreased significantly from the general trend, a slight gap can be seen from the median of the gas price. The median gas price in the last 30 days was 71.8 Gwei, and the median in September was 79 Gwei.

Footprint Analytics – Txn Gas Price Distribution (Latest 30D vs Sep. 2021)

From the perspective of the distribution of gas price bins, the data of the past 30 days has moved to the left compared with September slight offset. The proportion falling below 60 Gwei increased by 9%, accounting for 50% of users, while about 90% of transactions were below 140 Gwei. Although the change is not obvious, it does reduce the Gas price for some users.   

Footprint Analytics – Txn Gas Price Distribution (Latest 30D vs Sep. 2021)

The shift to the left is inseparable from the impact of the London upgrade, and more users have chosen the EIP-1559 transaction method. According to Footprint Analytics, the proportion of users who choose EIP-1559 as a transaction method has increased from less than 50% to nearly 80% in the past 6 months.

Footprint Analytics – Txn Type(Share)

Looking at the gas price breakdown in the past 30 days, the median gas price of those who choose the EIP-1559 transaction method is 67 Gwei, and the median gas price of those who still choose the original method is 83 Gwei, and there is an obvious gap.

From the perspective of the distribution of Gas price bins, the transaction that chooses the EIP-1559 method is more With predictability, the overall price trend will be smoother. However, the Gas price of the original transaction method fluctuates greatly, and there is a significant sudden increase during the period of 120-125 Gwei.

  Footprint Analytics – Txn Gas Price Distribution (EIP-1559 vs Legacy)  

The price binning of EIP-1559 is also obviously shifted to the left compared with the original transaction method And the proportion falling in the low price range is more. 51% of users who chose EIP-1559 spent less than 70 Gwei, compared to only 35% of those who chose the original method. It means that EIP-1559 generally helps more users save Gas fees.

Footprint Analytics – Txn Gas Price Distribution (EIP-1559 vs Legacy)

 Gas prices fluctuate regularly every day

Gas fee is ultimately a reflection of supply and demand, currently Blockchain is in a period of rapid development, and it is difficult to make a breakthrough in price reduction. Through the data of Footprint Analytics, it is found that the price of Gas can be traced at different times, and users can save costs by avoiding transaction peaks.

From the perspective of different time periods of the day, from 4 o'clock to 13 UTC time in the past three months The gas price is low during the hour period, with an average of below 100 Gwei, and the gas price rises during other periods. At 11:00 the price was as low as about 76 Gwei, and at 17:00 the price was as high as about 150 Gwei. Choosing the right trading time can save nearly half of the cost.

The variance (Variance) is also greater after 14 o'clock, which means that these periods The price fluctuates more. If you want a more stable price, you can consider trading in a range with a small variance.

Footprint Analytics – Gas Prices By Hour of the Day (UTC)

From a weekly perspective, the lowest price is on Sunday, followed by Saturday, and the highest price is on Thursday. People will still choose to trade more on weekdays.

The day with the highest variance occurs on Saturday, so for those who want stable and low prices Sunday is a good choice for users. Choosing a non-working day and a reasonable time period can save Gas fees with twice the result with half the effort.

Footprint Analytics – Gas Prices By Week Day (UTC)

Will the gas fee be reduced in the future?

While Ethereum is upgrading in London, it is also promoting layer 2 expansion and Ethereum 2.0. After the upgrade of Ethereum 2.0, PoW will be converted into a PoS mechanism, and at the same time, it will be transformed from a single chain to a multi-chain shard.

Many people pin the reduction of gas fees on this, although after upgrading to 2.0 through sharding Technology will increase network throughput and reduce network congestion, but there is still a long waiting process for fragmentation to complete.

With the current development trend of the encrypted world, people's demand for transactions on the chain will only increase . With such rapid growth, the relationship between demand and supply will push up the price of Gas.

Also don't forget the price of ETH. The London upgrade also started the burning mechanism. Based on the latest burning rate, it is estimated that 1.8 million ETH will be burned every year. After switching to the PoW mechanism, the issuance of ETH will also drop significantly, which may cause ETH to enter deflation. If the price of ETH rises, the gas fee paid in ETH is also equivalent to a passive increase.

Users want to exercise freely in the encrypted world, which is inseparable from the gas fee as "gasoline". Although the "gas price" cannot be determined, smart users can choose a better transaction method through data analysis and time period.

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