According to the average transaction fee spent on that day, Ethereum network gas expenses surged around the end of August, reaching a peak of $59 per transaction on September 7. On September 7, the median charge for an ether transaction was roughly $20. Days later, ether transaction fees have subsided to some extent, with the median and average ether fees being cut in half since then.
One of the most common complaints about digital currencies is the high transaction fees associated with sending these assets. Layer 1 bitcoin (BTC) and ethereum (ETH) transactions can be highly costly and unexpected, according to critics. The Layer 2 protocol the Lightning Network is the most commonly used response among bitcoiners, although there are also Layer 2 schemes for ethereum (ETH) transactions.
To begin, an ethereum user will pay between $3.39 and $18.74 per transaction for a Layer 1 transaction that is settled onchain. According to Etherscan gas tracker statistics, the $3.39 quotation is for a very low priority transaction, while the $18.74 price is based on metrics gathered for an average ethereum transaction, according to bitinfocharts.com. The same website also keeps track of the average ether charge, which is $9.29 at the time of writing. According to the website l2fees.info, a Layer 2 ethereum fee is presently $4.46 per transaction.
These fees do not take into account smart contract interactions, which can be more expensive. For example, Etherscan gas tracker statistics reveal that a typical ERC20 transfer costs $10.48, whereas utilising Uniswap can cost $32.25 at the time of writing. This means that transferring a token balance, communicating with a decentralised exchange (dex), or using an NFT marketplace may be more expensive than just transferring ethereum from point A to point B. As a result, Ethereum network competitors are hot on the project’s tail.
When it comes to high fees, Ethereum advocates have a few arguments, and the vast majority of ETH supporters believe the Ethereum 2.0 update will resolve the issue. Furthermore, there are Layer 2 projects and concepts such as “optimistic rollups,” and two specific projects, Optimism and Arbitrum, are utilising this technology. Furthermore, ether gas killers such as hermez.io, aztec.network, starkware.co, loopring.org, zksync.io, and fuel.sh seek to alleviate the transaction bottleneck and excessive fees.
At the time of writing, one send costs $1.61, while an Optimism transaction costs $2.38. Fees for Ethereum network competitor blockchains are lower than those charged for sending a standard ether transaction. According to Messari.io data, the average transaction cost for the crypto asset cardano (ADA) on September 6 was $0.59 per transaction.