Expert Insights: Low Ethereum Gas Fees Are Beneficial, But Not for

Sead Fadilpašić | Verified by Elena Bozhkova

Last updated:

June 5, 2024 03:59 EDT

| 21 min read

Key takeaways:

The Ethereum fee decrease was caused by the Dencun upgrade, the surge in Layer 2 solutions, and the latest shift in the crypto market.

Most experts agree that low Ethereum fees can last, but changes in regulations and market conditions will define their future.

Lower gas fees enhance accessibility for users and developers, potentially increasing Ethereum’s network activity and demand for Ether.

Concerns exist about the impact of low fees on Ethereum’s deflationary mechanism and the potential consolidation of power by larger entities, which could affect the network’s decentralized nature.

Lower fees may increase security risks like spam and poisoning attacks, but Ethereum’s continuous enhancements and active community are expected to protect the network.

The gas fees on Ethereum, the world’s second-largest blockchain by market cap, fell significantly following its recent massive upgrade. Cryptonews spoke with experts about the key factors contributing to the fee decrease, how sustainable the trend is, and its impact on users, the ETH price, DeFi, and NFTs.

The overall verdict is that the changes are mostly positive, but there are some potential downsides and security issues to keep an eye out for.

Here are the industry experts who contributed to this research:

Peter Eberle, President and CIO of Castle Funds, an investment firm managing funds invested in Bitcoin and other digital currencies since 2017;

Stepan Nilov, Consultant at BlocksBridge, a research and communications firm for the cryptocurrency industry;

Ryan Lee, Chief Analyst at Bitget Research, an arm of crypto exchange Bitget;

Garry Kabankin, Leading Market Analyst at blockchain analytics platform Santiment;

Edward Wilson, Social Media Lead & Member of blockchain analytics platform Nansen’s trend spotting division;

Stijn Paumen, Founder and CEO of Web3 payments platform Helio;

Patrick Gruhn, founder of Perpetuals.com, a MIFID II Market Infrastructure startup for crypto derivatives trading;

Vijay Marolia, the Managing Partner and Chief Investment Officer of multi-strategy investment firm Regal Point Capital;

Gabriella Kusz, the COO of TCS blockchain,...

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