Ethereum gas fees are the biggest expense of using the network, but the good news is they have lowered 62% since last month. In November, the average fees of transactions were $62.84, and since then, it has dropped to $23.34. It is still not very low, and for smaller transactions, Ethereum becomes obsolete due to the transaction cost. Still, it is a good thing for users who transact on the Ethereum network regularly.
Drop-in Ethereum gas fees
All actions that one can perform on the Ethereum blockchain that is swapping, sending coins, or smart contracts, involve a cost. And the most basic one of them is that sending Ethereum from one address to another cost around $62 itself. This transaction cost is one of the reasons why Solana is becoming so popular. It has lightning-fast transaction processing speeds and very cheap costs.
But Ethereum has a lot more use cases, and in some places, it becomes a non-negotiable choice to use for transactions. So, the good part is that the fast speed fee has been reduced to $23,34 per transaction. And then, we have the median Ethereum fees that were around $34.28 in November but are $12.99 now. Data transfer fees have also dropped as the transaction fees for Ethereum is around $6.78, and to move it is $15.49.
Layer 2 is solving the high fees problem
If one has to spend so much just to transact using Ethereum, it doesn’t make sense. Using layer 2 protocols, this cost can be mitigated. For example, Loopring on Ethereum costs $0.16 per transaction. This is one of the lowest cost, and after this, we have other tokens like Polygon Hermez and Arbitrum One, transactions using which will still be less than $3-$4. Layer 2 protocols are generally more advanced and add a lot of modifications to the network, which makes them more usable.
Bitcoin’s transaction fees have also dropped quite significantly in the last few months. Its current average is between $1.5-$5, which is around 95% less than April 2021 and definitely much lower than Ethereum. What are your thoughts as Ethereum gas fees have lowered since the last month? And do you think this fee will reduce further? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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