Binance CEO Says Drop in Gas Fees Won’t Happen Soon Following The Merge
Chengpeng Zhao, the CEO of Binance, the world’s biggest bitcoin and altcoin exchange, said in an interview with CNBC that Ethereum gas fees will not fall down immediately following the Ethereum Merge.
The Drop Will Takes a Lot of Time
Trading expectations that the merger will have a quick impact on the ETH environment are likely to be disappointed, especially if they hope that lower gas fees will happen immediately.
“Several people have exceptionally high short-term ambitions for the integration; they believe that Ethereum gas fees will instantly decrease from $10 per transaction to $0.02 per transaction. The likelihood is quite low that it will occur. It takes a lot of time,” said Changpeng Zhao.
He also added that the Ethereum upgrade takes multiple stages over multiple months or years.
“It is a very good development though, it is progressing in the right direction and it is a strong innovation, the Merge will happen today or tomorrow, but the Ethereum gas will not drop immediately.”
The Ethereum Merge has five stages namely The Merge, The Surge, The Verge, The Purge, and, The Splurge.
The Prediction of Crypto Community
According to Zhao, the world’s richest crypto millionaire, ETH will be able to reach the benefits from the merger with further improvements in the future.
“We expect those fees to diminish when the other advancements, like sharding, kick in, which is a good development for the industry.”
Sharding will happen in the Surge stage where Ethereum can be scaled by splitting the network into separate sections or “shards” to spread out the load on the network.
As Vitalik predicted in January, this upgrade is scheduled for 2023, and will bring Ethereum close to 80% completion.
For more info regarding Crypto Alpha and NFTs Alpha. Always follow us on Twitter and Instagram.