Cryptocurrency fans can celebrate the entry of their favorite tokens into the mainstream thanks to the impact of the Crypto-Bowl. Still, Ethereum lovers have one more reason to rejoice, as ETH trading hasn’t been this cheap in months.
This phenomenon extends to L2 solutions as well, with almost all of the most popular infrastructures paying less than $1 on average to send ETH and between $0.31 and $2.18 to exchange tokens, a more complex operation, according to the data. by L2Fees.
Using Ethereum is getting cheaper
Ethereum is a kind of Swiss Army blockchain. Big dApps, decentralized exchanges, smart contracts for enterprise applications, altcoins, shitcoins, stablecoins, NFTs, and many other innovative products run on this network.
But everything comes at a price, and all of this popularity has sent Ethereum fees skyrocketing, complicating short-term adoption prospects and giving rise to a multitude of competing blockchains and scaling projects.
But things seem to be changing. According to figures from Bitinfocharts, the average transaction fee on the Ethereum blockchain hit $15.31, a figure not seen since October 2021, when fees hit a low of around $13.
Average Ethereum fees. Image: Bitinfocharts
This represents a decrease of more than 75% in the average fare price since November 2021, when transactions reached costs of more than $62.8 on average.
The average transfer fee reached $6.67, a metric that brings a breath of fresh air to the average ETH user who just wants to make a simple payment or transaction.
Why fees matter
The issue of fees is of vital importance for the sustainability of Ethereum (and any blockchain). On Ethereum and all other proof-of-work blockchains, transacting users compete in a kind of bidding process to get their trades processed faster.
Simply put, the more fees you pay to miners, the faster your transaction confirmation time. However, unlike Bitcoin, Ethereum is not only used to transfer wealth, but is a Turing complete blockchain, which means it can run decentralized applications with complex operations.
But the higher the complexity, the more mining power is required for the transaction to execute. Because of this, it is normal to have fees of several hundred dollars for a complex token swap, especially on fast trades where a few seconds make the difference between a profit or a loss, such as legitimate arbitrage or exploiting bugs for more purposes. questionable.
The ultimate solution to ease the burden is Ethereum’s new consensus layer, formerly known as ETH2.0, which seeks to be proof-of-stake and introduce scalability solutions such as sharding, which could increase transaction processing capacity to nearly 100,000 transactions per second. according to Vitalik Buterin’s estimates.
But the road is long and many are skeptical. In the meantime, the best options are to use L2 solutions like Polygon or Loopring, where sending tokens costs less than $1, or to turn to competing blockchains like BSC or Solana.
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This post Ethereum fees haven’t been this cheap since October 2021
was published first on https://cryptopotato.com/ethereum-fees-have-not-been-this-cheap-since-october-of-2021/