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HomeCryptoEthereum gas fees at $1.6? The most unexpected finally happens

Ethereum gas fees at $1.6? The most unexpected finally happens

Ethereum accessible again – Since the emergence of DeFi at the end of 2019, the network Ethereum (ETH) suffered fromsignificant congestion problems… so much so that transaction fees have at times reached ten or even a hundred dollars. A phenomenon that has largely calmed down since the advent of the bear market.

$1.6: Ethereum finally shows reasonable fees

It has been now 2 years that the Ethereum network had accustomed us to insane transaction fees. Indeed, in May 2021, we spent on average $61 to carry out an unfortunate transaction.

At the end of 2021, it is not even worth imagining seeing a transaction drop below 20 dollars, considered at that time to be inexpensive. The point of no return was reached on May 1, 2022, when the Otherdeeds NFT releasewhere transaction fees had flirted with $200. Unheard of on Ethereum!

Evolution of fees on Ethereum over the last 3 years – Source: Blockinfocharts

Fortunately, this time may well be over, or at least experience a significant lull. For several weeks, on the sidelines of the significant fall in the price of ETH, transaction fees on Ethereum have returned to suitable levels.

Indeed, according to the data compiled by Etherscan at the time of writing these lines, it takes on average 1/40 cents to perform a funds transfer. In addition, it takes a little less $3 to interact with a smart contract.

For several weeks, on the sidelines of the significant drop in the price of ETH, transaction fees on Ethereum have returned to decent levels.
The average fees on Ethereum – Source: Etherscan.

Such levels of fees had no not been recorded since 2020. At that time, DeFi was only starting to get talked about, with the proliferation of governance tokens in early 2020.

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Will we see such high fees on Ethereum again?

This lull in transaction fees observed on Ethereum makes us wonder about the sustainability of this situation.

Indeed, the Ethereum network is no longer the same as it was in 2020, with the rise of DeFi. This one is about to live a major update in the coming months, with the transition to proof of stake via The Merge.

At the same time, the network should gradually see the congestion reduceas part of the transactions are deported to the solutions of second layer. Indeed, for several months, we have seen a significant boom in layers 2 on Ethereum. Optimism, Arbitrum, Starknet, ZKSync: all of these solutions keep getting better and could well prove lifesaving for the Ethereum network.

In addition, the share of gas used by layers 2 to publish proof of transaction data continues to grow.

for several months, we have seen a significant boom in layers 2 on Ethereum.
Gas spent by L2 when publishing data on L1 – Source: Dune Analytics

Although it is evolving, the costs spent by L2 on layer 1 of Ethereum currently only represent between 1 and 2% of the gas spent on Ethereum. However, this share tends to increase over time.

the share of gas used by layers 2 to publish proof of transaction data continues to grow
Share of gas (in %) used by L2 on L1 – Source: Dune Analytics

In the meantime, the Ethereum network continues to prepare for the rollout of The Merge. The testnet Sepolia is the next to know the switch to proof of stake.

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