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Will Ethereum Shanghai Upgrade Lower Gas Fees?

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  • Ethereum to upgrade its second layer in 2023. 
  • Ethereum is the second largest cryptocurrency in the crypto market. 

After the Merge, another event that will occur is the Ethereum Shanghai upgrade which is believed to reduce the gas fees. 

Ethereum Shanghai upgrade will ensure that Layer 2 of Ethereum is functioning appropriately, and this upgrade will likely occur in September.   

Ethereum Shanghai is referred to as Ethereum Improvement Protocol(EIP). Three major upgrades that could likely happen in the upcoming upgrade are as follows.    

The first and foremost change that is believed to occur is the reduction in gas fees/transaction fees/platform fees/user fees. 

The Merge was successful, but the assumption of gas fee reduction went wrong fees jumped up to 84% from their level of 2.58 USD per transaction just two days ago, on October 8th. 

Ethereum is the second biggest and most popular cryptocurrency in the crypto market, and Ethereum has the most number of smart contracts.   

Ethereum earlier was working on a proof-of-work(PoW) mechanism, and recently, it shifted its working mechanism to proof-of Stake(PoS), and the shift was termed as Ethereum Merge. 

Merge is the most popular event ever in the crypto market, and before this event, google took the initiative and featured a Merge decided date.

Before the event of Merge unprecedently, the ETH was trading around $1700-$2000, and there were many beliefs and assumptions of users and investors, but unfortunately, the wishes didn’t come true.  

The recent average gas fee is the highest since August 10th this year, reaching 4.78 USD. The median transfer fee on the same day was around 2.2 USD per transaction. 

According to the data on the gas tracker of Etherscan, the top priority fee reached 0.62 USD or 27 gwei per transaction. The fee before the Merge upgrade, during August end, was around 0.34 USD or 11 gwei per transaction. 

Arbitrum and Optimism is the most popular layer-2 scaling solution that makes Ethereum faster and cheaper, and it is believed that it will become cheaper to use after this upgrade. 

The upcoming upgrade of Ethereum is also planning to improve the functionality of Smart contracts on blockchains. Smart contracts have also been termed the backbone of crypto-related products like NFTs, DeFi, and DAOs.      

According to data from CoinMarketCap, while framing this article, Ethereum is trading at $ 1,210.18 with a 24-hour trading volume of $33,986,446,713.12. 

Ethereum created its white paper in 2013 and went live in 2014. It was developed by Vatalik Buterin, Charles Hoskinson, Anthony Di Iorio, Gavin Wood and Joseph Lubin.  

There are eight co-founders of Ethereum, and the most famous among them is Vatalik Buterin. 

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