With the drop in Ethereum’s price, there has also been a decrease in gas fees. Ethereum network fees hit a 6-month low making it 80% cheaper to transact with ETH. On January 10th, the average transaction cost was nearly $52, and at present, it is averaging around $10.26 per transaction. Yes, it is still a lot higher than other coins that are L2-based, like Loppring, ZKSync, and more. But for Ethereum, it is a pretty low fee.
Ethereum network fees hit a 6-month low
Ethereum’s price drop was also accompanied by a decrease in the average cost of transactions. It is now at $10.26, which is nearly the same cost as August-2021. Even though this is a high fee, it is still doable for large transactions. After topping out at $52, the fees of Ethereum have been on the downtrend. Even the median fees of transactions have decreased drastically in the past 45 days. It was at $29 at the time, and now the cost is $4.55 for transfers.
Still high compared to L2 solutions
Even though the cost of transactions has fallen nearly 80% in Ethereum, it is still very high compared to L2 solutions. With the cost of one median fee of ETH, one can do nearly 30 transactions in Loopring. To send ETH, the current cheapest solutions are Loopring at $0,13, ZKSync at $0.16, Polygon Hermez at $0.25. While for swapping, Loopring costs $0.66, and ZKSync costs $0.39. So, based on whether you would want to swap or send ETH, Loopring & ZKSync provides the cheapest rates.
About Ethereum
Ethereum is a blockchain-based platform best known for its native cryptocurrency, ether. The Ethereum network is made secure due to the distributed nature of blockchain technology, and the increasing demand leads ETH to grow in value. Currently, it is based on the proof of work consensus, but with Ethereum 2.0, we will be moving to a proof of stake mechanism.
It supports a network of decentralized apps or dApps. Another important part of ETH is smart contracts, which emerged on the Ethereum platform, integral to the network’s functionality. They are used in decentralized finance (DeFi) and other applications. Ethereum is the second-largest cryptocurrency by market cap after Bitcoin.
What are your thoughts as Ethereum network fees hit a 6-month low? And do you think it is low enough that transactions will be more feasible on the network? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin needs to close above $40k for bulls to take control.
