Home Cryptocurrency How a frog-themed token shapes Ethereum gas fees in 2023

How a frog-themed token shapes Ethereum gas fees in 2023

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We all know that the cryptocurrency world is bound up with memes and entertainment. From the memecoin “Dogecoin” that caught Elon Musk’s interest to the “Shiba Inu” cryptocurrency that tried to overcome it, memes are catchy and thriving in the cryptocurrency market. The community is mostly built within the Ethereum he ecosystem as he is one of the most cohesive communities. best way to buy ethereum, you have a lot of support.

The newest and most interesting coin is Pepe. Pepe reached the cryptocurrency sector after becoming a famous meme a few years ago. Cartoon-based drawings are used as a mood for almost any emotion, which is why Matt Fury used Ethereum to issue Pepecoin. The creators aim to increase the popularity of the meme coin.

But what is unique about this cryptocurrency and why is it affecting Ethereum gas prices?

An image showing the symbol of the Ethereum coin. sauce: pixabay

What’s so special about Pepe?

The deflation meme coin is unique in that it reinforces the meme culture that pervades the community, similar to cryptocurrencies. But the currency offers what only a few cryptocurrencies can offer: rewarding long-term stakers and incentivizing long-term holders to increase the coin’s chances of success. At the same time, the tax-free policy will make Pepe accessible and available to a wider audience, thus giving holders a boost for Pepe.

The way Pepe burns is also unique. The reason is that despite a maximum supply of 420,690,000,000,000 coins, portions of the coin are frequently removed from circulation to maintain scarcity and allow users to participate in the project.

Pepe is secured through the Ethereum blockchain by a PoS consensus mechanism where decentralized validators stake ETH to secure the network and process transactions.

What will happen to Pepe and Ethereum gas prices?

Pepecoin has skyrocketed in popularity since its launch in April. This has caused the median gas price to rise by more than 50% in the last 12 months, reaching 150 gwei (1 gwei is a billionth of his ether). The demand for pepecoin has dramatically changed the network and even impacted the liquidity pool. The Pepecoin transaction revealed that it has consumed about $10 million in gas since its inception.

While similar memecoins such as CHAD and DINO have seen success in the market cap in the past, things are different this time. Ethereum is working to bring down gas prices, but rising demand for certain cryptocurrencies is running counter to upgrade efforts.

Ethereum’s latest update, “Shanghai,” is believed to help bring down gas prices as it becomes more difficult for miners and investors to get their hands on ether. At the same time, it struggles with network scalability, which usually causes network congestion when the number of transactions suddenly increases.

How does Ethereum alleviate the challenge?

Ethereum’s latest completed update was Shanghai, whose main purpose was to allow users to withdraw their staked Ether. Our next goal is to address scaling concerns and make transactions faster and cheaper given Ethereum’s high fees.

At the same time, developers will benefit from cost savings through updates to EIP-3855 and EIP-3860 to facilitate on-blockchain activity for DApp creation. Many other minor updates help lower gas prices while maintaining network productivity.

Why should Ethereum gas prices stay low?

Gas prices are typically affected by network congestion and the complexity of actions taken on the blockchain.

Ethereum created the EIP-1559 program to make fees more predictable and prevent investors from being hit by sudden price fluctuations, but as demand for the coin increased, it decided to bring the base fees down to appropriate limits. becomes difficult to maintain. Also, gas prices cannot be significantly lowered as they are used to compensate for the efforts of stakeholders to maintain the network, which is essential to providing data security.

However, gas prices have become so high that the costs outweigh the benefits, so many people prefer to stop mining and investing. This is the case with well-known cryptocurrencies and networks like this one. Aside from the small cost relief associated with renewals, there are a number of ways users can minimize fees and save money.

Are meme coins important or are they safe to invest in?

Keeping gas fees low and maximizing transaction times, regardless of the type of coin on the blockchain, is better than any other feature. However, blockchain must be used to make various cryptocurrencies truly work, which is why we need to discuss the importance of meme coins.

The blockchain field is all about like-minded communities and groups of people committed to earning cryptocurrencies and increasing the value of their investments.

Memes always bring people together for entertainment, so Meme Coins help build these communities easily. The crypto sector is easy to link with what it has underpinnings, as some are already formed. That’s because this type of community takes the lead in keeping viewers engaged and engaged with the network’s common purpose. That’s why Ethereum has one of the strongest communities, interested in developing the ecosystem, providing further updates, and providing support to newbies and users interested in investing.

Still, when investing in memecoins, their stability comes with certain dangers. Let’s take the example of Doge, whose popularity skyrocketed after several tweets by Elon Musk. However, coins don’t always play an important role in normal times.

As with Pepe, a nascent cryptocurrency, the risks of owning this coin include the possibility that it could rise in value overnight and then fall dramatically in the next few hours. Its value depends on the hype from social media created by its owner. After that, it cannot be said that Pepe and other memecoins will follow the same path as Bitcoin and Ethereum, which have experienced various challenges over the years and maintained their credibility.

Conclusion

Pepe the Frog is a famous meme that was recently introduced to the blockchain space as a cryptocurrency. Its value skyrocketed so quickly that it led to higher gas prices, and Ethereum is now taking steps to address the issue.

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