In spite of the huge costs associated with utilizing the Bitcoin and Ethereum networks, founder of Mythos capital and crypto investor, Ryan Sean Adams believes that high gas fees in relation to the present Ethereum price could actually be a bullish sign. He is not the only one on this ship as other traders seem vehemently bullish on Ethereum price action.
Chandler Song, Ankr Network CEO recently described the crypto bull run as “expos[ing] a lot of vulnerabilities of the Ethereum network, which most DeFi projects are built upon.”
Enormous efforts are going into reducing ETH transaction fees with Eth2, layer-two scaling, and the Ethereum Improvement Proposal EIP-1559 proposed by Vitalik Buterin and Eric Conner in 2019, recommending the introduction of a burn mechanism to reduce fee volatility. However, with the proposal reducing Miners’ revenues to small tips sent alongside a burned base fee, EIP-1559 has been met with significant resistance from Ethereum’s mining community.
In a Grayscale research paper titled ‘Valuing Ethereum’ founder of Mythos capital and crypto investor, Ryan Sean Adams highlighted how high gas fees in relation to the current Ether price may be a bullish sign.
Ether Price to Sale Ratio
Image Credit: Ryan Sean Adams Twitter, Shutterstock