Following the bug and split that occurred after a large number of geth nodes were not updated, Ethereum fees have increased dramatically since August 21, from $ 11 per transaction to 0.0088 ether per transaction today (Aug. .98 USD).
Ethereum transaction fees explode
Ethereum is the second largest crypto asset in terms of crypto market cap, with a market cap of $ 375 billion, or 17.4% of the $ 2.16 trillion of the crypto economy. ETH is up 34.3% last month but has lost 2.1% in the past two weeks. On August 27, Bitcoin.com News reported that Ethereum was having issues upgrading and the issues led to a chain split. When that news subsided, discussion of rising Ethereum gas fees replaced conversation.
Ether fees have risen dramatically since Aug. 21, increasing 154.36% to today’s average transaction cost of $ 27.98 per transaction. The cost of interacting with smart contracts and Web3 platforms is even worse as people have reported Uniswap or decentralized exchange (DEX) fees of more than $ 300 to even over $ 1,000 per interaction. Non-fungible tokens (NFT) marketplace fees for places like Opensea also have significantly higher ether gas fees than usual.
Screenshots were taken by Reddit user u / Impossible-Ad7389.
Ethereum 2.0 hopes, “Ethereum killers”, gas reducers and compatible chains
The hope is that Ethereum 2.0 will fix the problems with the transaction fees and stabilize the fees more uniformly. However, while the Ethereum developers are preparing for the change, Ethereum competitors, also known as “ETH killers”, are steadily catching up with the second largest crypto asset.
Ethereum is facing increasing competition from blockchains such as Binance Smart Chain, Cardano, Solana, Polkadot, Terra, Avalanche, Tron, Cosmos and EOS. All aim and promise to provide much lower transaction fees to send funds or interact with decentralized financial (defi) applications.
Although the Ethereum 2.0 upgrade is something that these networks might want to fear as many Ethereum proponents believe it will solve the fee problems. Two specific projects aimed at lowering ether gas fees are Optimism and Arbitrum. These two projects use so-called “optimistic rollups” and the Ethereum community hopes they will make progress in lowering ether gas costs. In addition, there are other projects aimed at lowering ether gas costs with projects such as Fuel.sh, the aztec.network, starkware.co, loopring.org, zksync.io and hermez.io.
Ethereum faces significant competition from a number of other blockchains. This photo, designed by Coin98 Analytics, shows decentralized exchange projects (Dex) on Polygon, Heco and Solana.
In addition, people are already using projects like Polygon (MATIC) and Hecofi to use Ethereum cheaper too. The Ethereum community assumes that the full publication of ETH 2.0 will not be 100% by at least 2022. Until then, the demand for so-called “ETH killers” and alternative gas solutions will likely continue to rise. $ 27.98 or 0.0088 Ether per transaction isn’t very tempting for people who want to trade Ether, buy and sell NFTs, and interact with Web3 and Defi platforms.
What do you think of Ethereum’s soaring fees, which are up 154% in one week? Let us know what you think on this matter in the comments below.
Tags in this story
Avalanche, Binance Smart Chain, Cardano, Cosmos, Defi Fees, EOS, ETH Fees, ETH Gas, ETH Killer, Ether, Ether Gas, Ethereum Fees, Expensive Fees, Fees, Gas Killer, Opensea, Polkadot, Solana, Terra, tron, Uniswap, Web3
Photo credit: Shutterstock, Pixabay, Wiki Commons, Coin98 Analytics, Bitinfocharts.com, Reddit user u / Impossible-Ad7389,
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