Ethereum

Vitalik Buterin Proposes Low Transaction Fees On Layer 2, Promotes ETH Price Trend

Ethereum co-founder Vitalik Buterin has offer a solution to temporarily resolve the scalability and transaction fee issues at Layer 2 before sharding is complete. New updates may be added to the Shanghai hard fork.

Vitalik Buterin – Co-founder of Ethereum

Investors increase ETH price ahead of new updates

The Ethereum development roadmap is running non-stop. Ethereum co-founder Vitalik Buterin proposed a new update to provide instant Layer 2 scaling without sharding.

Rollups or Layer 2 chains inherit the security, decentralization, and liquidity of the Ethereum network. Early-stage rollups like Optimism, Arbitrum, and StarkNet await further optimization in 2022.

Buterin proposed a “blob-bearer transaction” that would reduce fees by a factor of five or more by the end of 2022.

Ethereum Layer 1 can still charge high fees, but zero-knowledge (zk) rollups and greater scalability can offer the most affordable fees for users. In the end, users will just use zk-rollups instead of directly interacting with the Ethereum network.

Low transaction costs and higher scalability should improve investor prospects for ETH. CoinShares, a capital markets firm, recently surveyed digital asset fund managers every two months. The survey results show improved investor sentiment towards Bitcoin and ETH.

ETH price 4 hour chart | Source: Trade View

The report shows a fundamental correlation between investor sentiment and digital asset allocation. Compared to altcoins like DOT, ADA, and SOL, the relatively larger allocations to ETH come with a bullish outlook on price potential.

“The attribution to digital assets reflects a growth outlook where allocations to larger coins (BTC, ETH) are slightly higher than altcoins.”

Analysts have assessed ETH’s trend and found that the altcoin is at a crucial level.

Anonymous Twitter account for altcoin Sherpa believes ETH is likely to return to the lows. However, the price maintains a bullish market structure on the 4-hour weekly chart and 3,000 is the key point.

https://twitter.com/AltcoinSherpa/status/1489585312804257797?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

“ETH: In general, soils don’t form that way. I think the price still has a chance to go back to the lows at the end. Other than that, the price is maintaining a bullish market structure on the 4-hour weekly chart. Higher peaks and valleys. Beware as you approach the dreaded $3,000 zone.”

Other analysts believe ETH bears are desperate as the altcoin nears $3,500.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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