Ethereum Gas Price Prediction Using Facebook Prophet Model

Abstract

Ethereum is the most well-known and largest accessible, decentralized, and block chain technology system software, originally introduced in 2015. Unlike Bitcoin, which only permits for monetary exchange, Ethereum enables for the use of Smart Contracts, which are written in the Solidity programming language and executed on the Ethereum blockchain network. When these smart contracts are used to perform a task on the Ethereum blockchain network, the network imposes a transaction price known as gas fees. The prediction of gas prices was conducted in this study using the Facebook prophet model in python programming language with the aim to narrow the gap between the current unexpected gas fee price and the ability of predicting the future gas fee, based on past gas prices and current dataset gathered daily for eight (8) years between 2015 and 2022. The results of this study show a 365-day forecast of the price of ether using three assessment criteria, with results that are near to zero and a fit model.