Vitalik Buterin reveals Ethereum’s EIP-4488, ‘quick and dirty solution’ to drop gas fees

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  • Vitalik Buterin’s new upgrade will lower the network’s gas fees up to five times through the implementation of EIP-4488. 
  • Based on official documentation, Ethereum will dock with Beacon chain in the first half of 2022. 
  • As layer-2 adoption continues to explode, there is a spike in transaction fees on the Ethereum network. 
  • Total value locked across layer-2 protocols has increased 700% over the past three months. 

Reducing the Ethereum network’s transaction fees is akin to removing the hurdle in further scaling and adoption of layer-2 solutions. Proponents expect Ethereum price to go parabolic after the next big upgrade. 

Ethereum price set to explode with new upgrades in the network

Ethereum co-founder Vitalik Buterin recently put forth a proposal to reduce the transaction fees on the ETH network by five times. Ethereum Improvement Proposal (EIP)-4488 is Buterin’s idea to leverage the network and decrease transaction calldata. 

Buterin said, 

Decrease transaction calldata gas cost, and add a limit of how much total transaction calldata can be in a block.

On November 24, Buterin pushed the proposal forward on Github. The solution will decrease the transaction cost significantly, as much as five times. Currently, rollups like Optimistic use the scheme “calldata.” 

Tim Beiko, a core developer at the Ethereum network, discussed the possible solutions to tackle Ethereum’s high transaction cost in a thread on Twitter. 

The last call of Ethereum developers in 2021 is scheduled for December 10; the team is likely to discuss the possibility of implementing the big upgrade on the Ethereum network. 

Ethereum options have peaked, and the number of call options with an exercise price of $5,000 is the highest. Historically, a high number of Ethereum call options implies that there is a spike in the altcoin’s adoption. It is indicative of an upcoming Ethereum price rally.

FXStreet analysts have evaluated the Ethereum price trend and predicted that the altcoin would break all resistance barriers. Analysts have set the next price target at $5,000.