ETH fees haven’t been this cheap since October 2021 as it hit $15.31 with the median fees reaching $6.67, marking the lowest price since 2021 as we can see more in today’s latest Ethereum news.
The crypto fans could celebrate the entry of their favorite tokens into the mainstream audience due to the impact of the crypto-Bowl but still, Ethereum lovers have one more reason to rejoice as trading ETH fees haven’t been really cheap over the past few months. The phenomenon extends to L2 solutions too with almost all of the popular infrastructures hitting less than $1 on average to send ETH between $0.31 and $2.18 to swap the tokens which is a more complex operation according to the L2 Fees Data.
Ethereum is the most popular blockchain now with big dapps, decentralized exchanges, smart contracts and more being built on this network. However, everything comes at a price and all this popularity has driven Ethereum’s fees through the roof and complicated the adoption prospects in the near term giving a rise to a multitude of competing blockchains and scalability projects. Things seem to be changing however and as per the figures from Bitinfocharts, the average transaction fee on the Ethereum blockchain hit $15.31 which is a figure not seen since October 2021 when the fees hit $13.
This represents a drop of more than 75% in the average fee price since November 2021 when the transactions reached costs of more than $62.8 on average. The median transfer fee reached $6.67 level which is a metric that gives a breath of fresh air to the average ETH user that wants to make a simple payment or transaction. The fee issue is of critical importance to the sustainability of ETH. On Ethereum, many blockchains and users who make transactions compete in a bidding process to have their operations processed faster. Simply put, the more fees you pay to the miners, the faster the confirmation time of the transaction.
ADVERTISEMENT
Unlike bitcoin, Ethereum is not just used to transfer wealth but is also a blockchain which means it can run decentralized applications with complex operations. The higher the complexity, the more mining power is required for the transaction to run. Because of this, it is normal to have fees of hundreds of dollars for a complex token swap especially on the quick trades where a few seconds can determine the difference between a profit or a loss like legitimate arbitration of exploiting the bugs for questionable purposes.
The main solution that can ease the burden is the new Ethereum consensus layer known as ETH 2.0 which seeks to be proof of stake and introduce scalability solutions like sharding and raising transaction processing close to 100,000 transactions per second as per Buterin’s estimates.
ADVERTISEMENT
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
