Ethereum Fees Pushed Higher by DEX Trading as Optimism's Upgrade Nears

As Ethereum (ETH) continues to be plagued by high gas prices, the Tier 2 (L2) downsizing solution is expected to launch a major update on November 11. “Progress is being made towards scalability through L2 scaling solutions that promise lower rates and full alignment with Ethereum. This Thursday, November 11, L2 Optimism will release one of its biggest updates. update which, among other things, will dramatically improve the developer experience. based on optimism, "according to crypto analysis firm Coin Metrics. Layer 1 (L1) is the base protocol (the Ethereum blockchain), while that L2 is any protocol based on Ethereum. Decentralized finance (DeFi) startup Optimism announced "the biggest update in the history of Optimistic Ethereum: OVM 2.0" in September, as "the simplest version , the cheapest and fastest OE [Optimistic Ethereum] ever. "Then, in late October, they described it as" a new gold standard for L2s. For this Twitter thread, Optimistic Ethereum will become the first [Ethereum virtual machine] L2 equivalent, meaning that almost all of their custom code would be cut. "in favor of simply using an existing Ethereum client - Geth. Meanwhile, as reported in mid-July, Optimism rolled out the long-awaited Alpha L2 solution for the leading decentralized exchange (DEX) Uniswap (UNI) via the main Optimistic Ethereum network Commissions are "priced" on certain playersIn particular, he cited an increase in offers and unique buyers in recent weeks on Uniswap. Source: Coin Metrics In addition to DEX trading, however, the recent coin craze could also play a role, as the recent self-proclaimed 'dogecoin killer', shiba inu (SHIB), is an Ethereum-based ERC20 token. “For example, on October 28, over 100,000 ETH addresses interacted with SHIB while 133,000 transactions involved the token that day, roughly 9% of the 1.5 million ETH transactions that day,” said Coin Metrics. The analyst firm further noted that high gas prices remain "a double-edged sword" for Ethereum. On the one hand, this is a sure sign that the activity on the protocol is high, indicating a high demand from users, but on the other hand, as indicated, the commissions "price" certain actors and activities. As of going to press (12:37 UTC) on Wednesday, ETH was trading at $ 4,746, down just under 1% in the past 24 hours and up 3.2% for the week.

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