Cryptocurrency and memes go hand in hand. Dogecoin, Shiba Inu and now Pepecoin have all gained popularity in the crypto market. Matt Furie created Pepecoin with Ethereum to further advance meme coins. But what makes this coin special, and why is it influencing Ethereum gas prices?
What’s so unique about Pepe?
The deflationary meme coin has a few features that make it appealing. Firstly, it rewards long-term stakers and holders to increase the coin’s success. Secondly, it has a no-tax policy to make it more accessible to users. Finally, the burning method removes coins from circulation and maintains scarcity. All of this is secured through the Ethereum blockchain and its PoS consensus mechanism.
Why is Pepe causing an issue with Ethereum gas fees?
Since the launch of Pepecoin in April, the median gas price has increased by more than 50%, reaching 150 gwei. The demand for Pepecoin is causing network congestion, affecting liquidity pools. Studies show that Pepecoin transactions have burned around $10 million of gas. Similarly, CHAD and DINO have seen success in the past, but the impact of Pepecoin is different.
What is Ethereum doing to mitigate these challenges?
The latest update, Shanghai, is designed to let users withdraw staked ether. Scaling issues will also be addressed to make transactions faster and cheaper. Additionally, developers will benefit from lower costs through the EIP-3855 and EIP-3860 updates. Ethereum is also trying to make fees more predictable with EIP-1559, but it becomes difficult when a coin increases in demand.
Why should Ethereum gas fees remain low?
Gas fees are affected by network congestion and the complexity of actions made on the blockchain. To keep fees low, Ethereum needs to encourage activity on the blockchain and compensate stakers for their efforts. High fees dissuade miners and investors, which is why Ethereum has to take steps to lower them.
Are meme coins important or safe to invest in?
Meme coins help build communities with similar interests. They also take the initiative to keep the audience engaged and interested in the project. However, there are risks when investing in meme coins. They can increase in value overnight and then drop dramatically. Therefore, it is important to be aware of such fluctuations.
Pepecoin is the latest meme coin to join the cryptocurrency sector. Its popularity has caused an increase in Ethereum gas fees, which Ethereum is trying to address. Meme coins create strong communities and are fun, but their value is unpredictable and can fluctuate. It is important to be aware of the risks when investing in meme coins.