Cryptocurrency enthusiasts may rejoice at the arrival of their preferred tokens into the public audience as a result of the Crypto-impact. Bowl’s Still, Ethereum fans can rejoice because trading ETH hasn’t been this inexpensive in months.
According to L2Fees data, practically all of the most popular infrastructures charge less than $1 on average to transport ETH and between $0.31 and $2.18 to switch tokens – a more sophisticated process.
Ethereum is a blockchain that is similar to the Swiss Army. This network supports large dApps, decentralized exchanges, smart contracts for enterprise applications, altcoins, shitcoins, stablecoins, NFTs, and a plethora of other unique products.
But everything has a cost, and Ethereum’s fees have skyrocketed as a result of its popularity, hurting adoption prospects in the short term and giving rise to a slew of alternative blockchains and scalability projects.
However, things look to be changing. According to Bitinfocharts, the average transaction cost on the Ethereum blockchain has reached $15.31, a level not seen since October 2021, when fees were around $13.
This is a more than 75 percent decrease in the average fee price from November 2021, when transactions cost more than $62.8 on average.
The median transfer cost reached $6.67, which is a breath of fresh air for the regular ETH user looking to make a simple payment or transaction.
The fee issue is important to Ethereum’s long-term viability (and any blockchain for that matter). Users who make transactions on Ethereum and all other proof-of-work blockchains compete in a form of bidding process to have their operations processed more rapidly.
Simply simply, the more fees you pay to miners, the faster your transaction will be confirmed. Unlike Bitcoin, Ethereum, on the other hand, is a Turing-complete blockchain, which means it can run decentralized apps with complicated processes.
However, the more the transaction’s complexity, the more mining power is necessary to complete it. As a result, it is common to see fees of several hundred dollars for a sophisticated token swap, particularly on rapid trades where a few seconds can mean the difference between a profit or a loss such as valid arbitration or exploiting bugs for more dubious purposes.
According to Vitalik Buterin’s estimates, the ultimate solution to alleviate the burden is the new Ethereum Consensus Layer, formerly known as ETH2.0, which seeks to be proof-of-stake and introduce scalability solutions such as sharding, potentially raising transaction processing capacity close to 100,000 transactions per second.