U.Today - Vitalik Buterin has expressed his gratitude to the community amid ETH’s massive price drop. Ethereum remains under negative pressure and has slipped by 22% from its current high, all while the network has improved efficiency. Gas limit has been increased from 30 million to 36 million, according to Buterin, who recently said this has boosted the ability of the network to handle 20% more transactions per second than what was possible before.
It is expected that the update would reduce the transaction fees by 10% to 30% and was supported by 49.5% of the validators. Problem is, Ethereum’s price movement has not exhibited this feature yet as this asset continues to be swept in the broadly bearish market. Ethereum is still in a downtrend and is struggling to recover in spite of the favorable technological improvements.
Some of the reasons for the price drop have been the high fees in the pre-gas change and a shift in investors’ focus toward more spacious blockchains. That is why its fee is low, and the throughput is high, which is why several meme coin traders are flocking to Solana to look for other faster and cheaper transactions. The last release of Ethereum update has received rather moderate attention by the market.
Better transaction speeds and lower fees are positive things which, however, have not been enough to regain the investors’ trust. Still, the sentiment analysis of Ether shows a significant increase in the negative tone mentioned in this section of the article, and Buterin has responded to criticism of the project in the last few weeks. Considering this, Ethereum must take and climb over these levels and show that recent improvements to the network lead to more demand and utilization for more transactions.
Ethereum will struggle to maintain dominance as it approaches adversarial competition from other Layer-1 blockchains. Thus, while the changes are relatively basic, more struggle for Ethereum’s price may be expected until the general market environment becomes stable again. Two issues that will be of specific interest to investors include whether the new gas limit extension holds any long-term benefits for Ethereum and its usability as well as for the fees associated with the same.