EIP-1559 is applied but gas is not reduced

[MrSpasybo]

I would have expected that after the London update and the adoption of EIP-1559, gas fees would drop as the network automatically calculates gas in line with the actual situation. However the truth is that we don't see 5 gwei or 10 gwei again like in June, instead gas usually ranges from 40 gwei to 50 gwei and each transaction costs a minimum of 8 USD.

Some reasons that come to mind:
+ The explosion of NFT gaming tokens: we can see OpenSea & Axie in the top gas consuming platforms;
+The recovery of the entire crypto market, including many ERC-20 tokens when BTC recovered from $29K to $43K;

Many of my friends have been waiting for London to be able to move ERC-20 tokens from private wallets with cheaper fees, it seems they made a mistake. But we're all glad the market is recovering well, at least we don't use DEXs very often.

Maybe we have to wait for the adoption of layer-2 solutions on Ethereum to get gas 5-10 gwei.

Do you think high gas prices are a good signal for market recovery and growth? Does high gas prices have a big impact on your crypto market returns?

[Master107]

Quite disappointed but what I can do than to adjust myself from broken expectation to reality. Maybe BSC is my new pet. Haha..
BSC could be my new favorite this 2021. I thought ETH could change something big that once again will become the hottest blockchain, but it wasn't the result.

I will not expect either the adoption of layer 2. Will wait for the result seems reasonable. 

[Freemind]

Unfortunately the results are not what most users expected, something similar I thought a long time ago when some called it a "magic solution". For now and until the transaction fees on the Ethereum chain are lowered (if it happens), I will continue to use BSC and Tron trying to avoid using ERC-20 as much as possible. If everything continues as before, it is possible that every day fewer people use the Ethereum chain, we will see what happens.

[Jaephoenix]

Actually the Ethereum London fork aka EIP 1559 is not a magic wand that wishes all the problem in the Ethereum blockchain away. The hype was too much and a lot of people came to place their trust in it. The aim is regulating the gas price, not crashing it

[Freemind]

Actually the Ethereum London fork aka EIP 1559 is not a magic wand that wishes all the problem in the Ethereum blockchain away. The hype was too much and a lot of people came to place their trust in it. The aim is regulating the gas price, not crashing it

The hard fork also does not regulate (for now) the price of transaction fees. It may take a while for it to work properly, but if we look at the market now, the price of transaction fees is increasing due to the high demand for Ethereum, as before, and the more the demand and value of Ethereum increase, the fees will continue to rise as well. If the price of tariffs continues to rise, we will soon be at the levels of months ago.

[Hipshot]

I would have expected that after the London update and the adoption of EIP-1559, gas fees would drop as the network automatically calculates gas in line with the actual situation. However the truth is that we don't see 5 gwei or 10 gwei again like in June, instead gas usually ranges from 40 gwei to 50 gwei and each transaction costs a minimum of 8 USD.

Sharding is not part of the London update, there is not more space for more tx per block, how could gas fees go down..

Do you think high gas prices are a good signal for market recovery and growth? Does high gas prices have a big impact on your crypto market returns?

Sometimes fees are a sentiment indicator, high fees == bubble, low fees == accumulation time. But sometimes they are leading indicator, e.g. when Btc was stagnant at 6k during crypto winter tx fees collapsed, some days later bad things happened.

[TomPluz]

One of the few things that I hate with cryptocurrency is that we are becoming victim of a network's success. We are all dreaming of a massive mainstream adoption where people are really into cryptocurrency in many aspects of people's lives but with this situations comes the problem of higher transaction fees. I still don't understand why it is not possible to put a certain ceiling in every transaction. What is happening is we are robbing the small users of their money which is a big insult to what cryptocurrency should be.

[Freemind]

One of the few things that I hate with cryptocurrency is that we are becoming victim of a network's success. We are all dreaming of a massive mainstream adoption where people are really into cryptocurrency in many aspects of people's lives but with this situations comes the problem of higher transaction fees. I still don't understand why it is not possible to put a certain ceiling in every transaction. What is happening is we are robbing the small users of their money which is a big insult to what cryptocurrency should be.

Personally, I didn't think of EIP-1559 as a feature that will help mass adoption of cryptocurrencies, but I did think that, in part, it might help a bit by making transactions cheaper. Since last August 5 (when the fork entered the mainnet) there has not been a significant change that the transaction fees are cheaper, and now they are lower because Ethereum has remained at the same value for a few hours, when the demand for Ethereum increases again, the transaction fees will also increase.