Home Ethereum Ethereum Gas Fees Stay Low Ahead of Merger

Ethereum Gas Fees Stay Low Ahead of Merger

Ethereum Gas Fees Stay Low Ahead of Merger

Ethereum gas fees are a major talking point. There was a time when average transaction fees even reached $100. However, as the crypto market has shrunk, and so has the price and demand for Ethereum, its gas fees have come down significantly. It is still much higher compared to layer 2 networks on Ethereum, but we cannot expect the same for layer 1 solutions. However, as the Ethereum merger approaches and gas fees continue to rise stay low, we can expect further decline after ETH turns POS, but it will take time. The merger officially has nothing to do with transaction fees or debit, the ETH foundation said.

Ethereum gas fees drop 99%

Coinmarketcap reported that Ethereum’s highest gas fee was $196.638, which is insane. However, it has fallen over 99% since that level, with an average fee per trade of $1.37. Median transaction fees are even lower at $0.544. This makes Ethereum transactions much more viable, but it’s still not good enough for small transfers like a coffee or a burger. In fact, if we even compare it to Bitcoin transfers which are considered totally cheap, ETH gas fees are higher.

Ethereum Gas Fees Stay Low Ahead of Merger

Credit: The Economic Times

For the same, we have layer 2 solutions built on Ethereum with transaction costs below 10 cents. For example, if you are transferring Ethereum through Metis, the cost would be 1 cent per transfer. At the same time, the exchange on the network costs 6 cents. Another popular L2 solution, Loopring, costs 3 cents per transfer and around 37 cents for trading. Other L2 solutions also have lower fees than Ethereum.

Why do Layer 2 solutions have lower fees?

Off-chain technologies created “on top” of the Ethereum mainchain are Layer 2 solutions. They operate as smart contracts on Ethereum and communicate with off-chain software without requiring core protocol changes.

Although layer 2 solutions can accomplish various tasks (such as scaling payments or smart contracts or off-chain computing), they still have one trait: they offload the majority of the work to a permissionless blockchain. , which guarantees safety. This makes them more scalable and cheaper.

What do you think then that Ethereum gas fees remain low ahead of the merger? And do you think that after ETH moves to POS, fees will decrease? Let us know in the comments below. And, if you found our content informative, share it with your friends.

Read also : Experts Predict Another 50% Stock Market Drop From Here.


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