Ethereum Transaction Fees Skyrocket
Ethereum is the second-largest crypto asset in terms of crypto market
capitalization with a $375 billion market cap or 17.4% of the crypto
economy’s $2.16 trillion. ETH is up 34.3% during the last month, but has lost 2.1% during the last two weeks. On August 27, Bitcoin.com News reported
on Ethereum having issues upgrading and the problems led to a chain
split. As that news has settled, discussion of rising Ethereum gas fees
have replaced the conversation.
Ether fees have jumped dramatically since August 21, spiking 154.36% to today’s average transaction cost of $27.98 per transaction.
The cost to interact with smart contracts and Web3 platforms is even
worse, as people have reported on Uniswap or decentralized exchange
(dex) fees being upwards of $300 to even over $1K per interaction.
Non-fungible token (NFT) marketplace fees for places like Opensea have
significantly higher ether gas fees than usual as well.
Ethereum 2.0 Hopes, ‘Ethereum Killers,’ Gas Reducers, and Compatible Chains
The hope is that Ethereum 2.0 will fix the issues with transaction
fees and stabilize the fees to be more uniform. However, while Ethereum
developers prepare for the switch, Ethereum competitors otherwise known
as ‘ETH-Killers’ are steadily catching up to the second-largest crypto
asset.
Ethereum is facing rising competition from blockchains like Binance
Smart Chain, Cardano, Solana, Polkadot, Terra, Avalanche, Tron, Cosmos,
and EOS.
All of which aim and promise to provide much lower transaction fees in
order to send funds or interact with decentralized finance (defi)
applications.
Although the Ethereum 2.0 upgrade is something these networks may
want to fear as many Ethereum proponents believe it will solve the fee
issues. Two specific projects that aim to squash ether gas fees include Optimism and Arbitrum. These two projects leverage what’s called “optimistic rollups”
and the Ethereum community is hopeful they will make progress toward
relieving ether gas costs. Additionally, there are other projects that
aim to crush ether gas costs with projects like fuel.sh, the aztec.network, starkware.co, loopring.org, zksync.io, and hermez.io.
Furthermore, already people are using projects like Polygon (MATIC)
and Hecofi to utilize Ethereum in a cheaper fashion as well. The
Ethereum community understands that the full ETH 2.0 release will not be 100% until at least some point in 2022. Until then so-called ‘ETH
Killers’ and alternative gas solutions will likely continue to increase
in demand. $27.98 or 0.0088 ether per transaction is not very enticing
to people who want to transact with ether, buy and sell NFTs, and
interact with Web3 and defi platforms.
source link : https://news.bitcoin.com/ethereum-fees-jumped-154-since-last-week-400-uniswap-fees-1k-to-interact-with-opensea/
Following the bug and the split that occurred after a great
number of Geth nodes did not upgrade, Ethereum fees have risen
dramatically since August 21, jumping from $11 per transaction to
today’s 0.0088 ether per transaction ($27.98).
