Continuing congestion on the Ethereum (ETH) network has led some developers and community members to call for increasing the gas limit, which defines its transaction throughput.
Data from Etherscan shows that the average gas price rose more than three-fold since early May, with an average of about 30 Gwei in the last few days.
According to EthGasStation, this results in an average of a $0.16 fee to send a simple ETH transaction, which uses the least gas possible. ERC-20 token transfers and smart contract calls can cost many times as much.
The fee increase is already having a significant impact on on-chain activity for gaming DApps. DappRadar statistics show that Ethereum gaming activity plummeted in May, while other chains made slight gains.
Source: DappRadarCalls to increase the gas limit
Fees have increased primarily due to higher on-chain activity — especially due to Tether’s ongoing transition to the ERC-20 network. While the stablecoin provider is acting to fix the situation through sidechains, it may take some time for layer two solutions to establish themselves.
In the meantime, some Ethereum builders, like 1inch exchange, began calling for the gas limit to be raised by a factor of at least 2.5, up from the current 10 million gas ceiling. That would, in theory, increase the capacity of the network and reduce fees.
The gas limit in Ethereum defines the maximum number of calculations that can be inserted into a block, and is very similar to the block size concept in Bitcoin (BTC).
Gas is an abstract representation of the computing resources expended by each operation. Each calculation’s gas cost is manually set by Ethereum developers — though they are generally close to the true computing cost.The issues of increasing the gas limit
Ethereum’s co-founder, Vitalik Buterin, directly replied to 1inch, suggesting they push for a more conservative increase t...