No, “ETH 2.0” will NOT reduce transaction fees

First of all, Eth 2.0 does not exist. It is named "The merge" and is the second of 3 Ethereum upgrades. "The merge" and "Shard chains" are yet to come out. The first upgrade, "The beacon chain" is currently live.

The most common misconception on this subreddit is that when eth 2.0 comes out, transaction fees will be lower or even non-existent. That is completely false.

The upgrade will have an impact on the consensus layer. Gas fees are paid on the execution layer of Ethereum. So, unfortunately, gas fees will not be cheaper and we must stop having wrong expectations.

More activity on Ethereum blockchain = higher fees

Less activity on Ethereum blockchain = lower fees

Those fees that you are paying now will simply go to staking Ethereum instead of miners as it does currently.

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What the merge WILL do, is make Ethereum eco-friendly. The transition to proof of stake makes the network 2000 times more energy-efficient, requiring 99.5% less energy to process transactions.

Security will be better, and the merge will most likely have a positive influence on ETH price as staking is encouraged. In the transition to POS, fewer Ether tokens will be minted thus lowering inflation.

For comparison, ETH is staked at around 8.3%, while ADA is at 73%, so there is huge space for upside.

All in all, still bullish on Ethereum