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The price of ether gas surged, fueling costly transfers

Ethereum, the second-largest crypto asset by market capitalization, hit an all-time high of $4,467 per unit on October 29, 2021. Meanwhile, Ether gas fees have increased since the Ethereum network’s Altair update went online.

The price of ether gas surges, fueling costly transfers

Image Source: Bitcoin News

For many years, the two most valuable cryptocurrencies have struggled with hefty transfer fees, but this month, Ethereum’s network fees are substantially higher than bitcoin’s. According to data from bitinfocharts.com, bitcoin’s (BTC) average network charge for Saturday, October 30 was roughly 0.00000015 BTC per byte or $3.15 per transaction.

According to the same web service that tracks ethereum (ETH) gas fees, moving some ether will cost roughly 0.012 ETH ($50.53) for every transaction. According to the data, ETH network fees are 1,504 percent higher on Saturday morning than BTC network fees. In comparison to bitinfocharts.com’s measures, data from the website l2fees.info is a little more modest. It costs $18.45 per transaction to move ethereum at the time of writing.

Transferring Ethereum-based tokens and swapping tokens using a smart contract is substantially more expensive. According to l2fees.info, the fee for transferring tokens is $43.13 per transaction on Saturday, and it costs over $94 to swap tokens by engaging with a smart contract. Even at $18.45, the lowest ether transaction charge is still 485 percent greater than the average BTC transfer today.

Using a second-layer method like Arbitrum or Polygon Hermez to move ethereum is substantially less expensive than using onchain ETH transfers on the main network. Polygon Hermez-based ether transfers cost roughly $0.25 per transfer at the time of publication, whereas Loopring’s Zkrollup L2 solution costs $0.74. 

A user will pay $1.03 each sends with Zksync and $4.21 with Arbitrum One. Optimism, an EVM-compatible Optimistic Rollup chain, charges $4.31 per transaction today.

What do you think about Ethereum’s recent rise in network fees? Comment below and let us know your thoughts.

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