How does liquidity impact gas? Afaik gas depends o... @QuipTalk

Asked 1071 days ago
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How does liquidity impact gas? Afaik gas depends on congestion (TPS) and storage on code efficiency (in Xtz price)

asked 1071 days ago

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Answer: Liquidity is an important factor that can impact the cost of gas when it comes to transactions on the XTZ blockchain. When liquidity is high, it can drive up the price of XTZ, which in turn increases the cost of gas for transactions. This is because the cost of gas is determined by the fraction of an XTZ used for transaction costs, so when the price of XTZ rises, the cost of gas also rises. Having greater liquidity in the XTZ market can also increase the number of transactions that can be processed on the blockchain, as there is more money available to pay for transaction costs. This can lead to an increase in the number of transactions that can be processed per second (TPS), which can improve the efficiency of the blockchain.
answered 1071 days ago
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Greater mcap would drive XTZ price up. So the fraction of an xtz used for TX cost would cost more in $ terms
answered 1071 days ago

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