How Ethereum Gas Prices Soared Due to Memecoin Craze?

Ethereum gas prices surged to another level after the memecoin craze became more prominent and the talk of the town

Memecoin Craze reaching its glory caused Ethereum gas prices to surge to another level. Last year's merge to ETH 2.0 was supposed to fix high gas-fee issues, and while it went a long way in addressing them—recent buyer demand has shown that they can still become expensive. While ETH might not be the best investment right now when it comes to price action, it's still the backbone of the defi token world and home to countless innovative projects on its blockchain. That's why there will always be a place for ETH in the crypto world, and there should arguably always be a place for it as part of a diversified portfolio.

Notably, prominent blue-chip NFTs like MAYC and Azuki drove the surge in NFT volume. DappRadar's data indicated that over the past week, the volume of these NFTs increased by 29.9% and 129% respectively.

Meanwhile, Ethereum's native cryptocurrency, ETH, was trading at US$1,873 at press time. The coin's MVRV (Market-Value-to-Realized-Value) ratio increased over the last month, suggesting that the profitability of addresses holding ETH is relatively high.

This could incentivize these address holders to sell and secure profits, potentially impacting the price of ETH shortly.

Layer 2 Ethereum (ETH) solutions are gaining interest as they solve the scalability difficulties within Ethereum (ETH), which have resulted in high Ethereum (ETH) gas prices since 2020.

Ethereum (ETH) smart contract implementation on Layer 2 has increased by 160% yearly, indicating increased Ethereum (ETH) development activity. Some experts say sharding the Ethereum (ETH) network may also assist in cutting gas prices.

Following the execution of the Shanghai update last week, approximately 1 million staked ETH worth more than US$2 billion were removed. The long-awaited update went live on April 12^th, allowing the withdrawal of staked ETH. At the time of writing, the price of Ethereum (ETH) is rest at the US$1.8k barrier.

5 ways to reduce the Ethereum gas prices

Use Simulation Through DeFi Saver

You don't know the actual gas fee until you carry out the transaction and pay for the gas. However, you could use the DeFi Saver app to simulate your transactions. First, you'll create a recipe for Ethereum activities and then run it virtually.

Use a Layer-2 Blockchain

The Ethereum Mainnet, also known as Layer One, is frequently congested, making transactions costly. Layer-two blockchains offer users the ability to scale up their transactions, and they do so by utilizing technologies such as Rollups and side chains.

Pick your transaction times carefully

When it comes to Ethereum transaction fees, timing matters. According to gasprice.io, a handy resource for checking real-time gas fees, gas prices usually peak sometime between 8 a.m. and 1 p.m. Eastern Time. Saturdays and Sundays are usually the cheapest days to transact in ETH. A good rule of thumb is that the cheapest time to make ETH transactions is typically outside of working hours in the U.S. and Europe.

Use DApps That Offer Rebates and Discounts

One of the easiest ways to avoid Ethereum gas fees is to use Ethereum projects and dApps that offer fee subsidies or nominal fees. If you are looking for such a platform, Balancer is a great one. The platform refunds the gas fees up to 90 percent in the form of BAL tokens. Balancer minimizes the gas fees for high-frequency traders by carrying out traders that don't leave the vault.

Sort Transaction Types

Depending on the sort of transaction, the gas fee varies on the Ethereum blockchain. To save money on gas fees, users may wish to organize and implement similar transactions simultaneously. Consider that they have two Ethereum addresses, each containing 1,000 tokens. Now, if users intend to store all tokens in a new DApp's crypt to earn higher returns.