High Gas Fees Continue to Plague Ethereum Network
After the Ethereum merge, users were hopeful that gas fees on the network would decrease. However, the reality has been quite different. In a recent example on February 13th, a single transaction on the Ethereum network was charged a staggering 42.88 ETH in gas fees, worth over $113,531.
This is not an isolated incident, as similar cases have been recorded in the past. Last year, an investor paid 64 ETH, equivalent to $118,600, for a single transaction.
These exorbitant gas fees are pushing users to explore alternative solutions like Polygon and Arbitrum, which offer lower fees while maintaining security.
Why Transaction Fees are Charged
Transaction fees are a common feature across blockchain networks. Ethereum’s gas fee system is particularly well-known. There are four scenarios where users have to pay gas fees on Ethereum:
- Sending Ethereum
- Minting NFTs
- Utilizing Ethereum-based Smart Contracts
- Creating Dapps
The amount of gas fee depends on the purpose of use and the demand and supply dynamics of the network. Gas fees have steadily increased over the years due to rising Ethereum prices and network congestion.
Ethereum Cancun-Deneb (Dencun) Upgrade as a Solution?
The upcoming Ethereum upgrade known as Dencun aims to address scalability, security, and efficiency issues. One of the proposed improvements is EIP-4844, which aims to reduce gas fees by introducing blob-carrying transactions with larger blob sizes. While this upgrade offers hope for lower gas fees, its effectiveness remains to be seen.
Conclusion
Gas fees are a necessary part of the Ethereum network, but the excessively high fees are causing concern among users. Until a viable solution is found, users can consider layer 2 options for their transactions, taking into account timing and cost analysis.
By
By
By
By