Good News! Ethereum Transaction Fees Drop, Swap And Send Crypto Is Now Cheaper

Ethereum transaction fees are cheaper than last year. (QuanStamp)

JAKARTA – Ethereum is known for its high transaction fees, a recent report reported that the average gas fee on the Ethereum blockchain has decreased and reached 15.31 US dollars. Meanwhile, the average transaction fee reached 6.67 US dollars. This is the lowest transaction fee drop on the Ethereum network since September 2021.

With a significant decrease in transaction fees on the Ethereum network, it has the potential to attract a wider range of crypto users to buy tokens using the ETH network. ETH crypto trading is currently the cheapest in over a year.

Reporting from Cryptopotato, this decrease in transaction fees was followed by a number of second layer networks (layer 2) such as Polygon and others. Almost all of these popular infrastructures reach an average transaction fee of 1 US dollar to send ETH. Meanwhile, to exchange or swap tokens only costs 0.31 to 2.18 US dollars according to the L2Fees report.

Ethereum has many utilities such as large decentralized applications (DApps), smart contracts for enterprise applications, altcoins, shitcoins, stablecoins, NFT, and various other innovative products that use the Ethereum network.

The complex utility of the Ethereum blockchain has pushed up its transaction fees, also further complicating its adoption in the near future. This gives rise to stiff competition from various blockchains and other scalability projects.

However, the transaction fees on the Ethereum network have changed. Data from Bitinfocharts reports that the average transaction fee on the Ethereum blockchain has reached 15.31 US dollars, although the fee has dropped to 13 US dollars.

This represents a more than 75 percent drop in the average fee price since November 2021, when transaction fees reached an average fee of more than US$62.8.

The drop in the ETH transfer fee to 6.67 US dollars has provided a breath of fresh air for Ethereum users who want to make simple payments or transactions over the network.

Why Are Costs Important?

The issue of transaction fees or gas fees is very important for the sustainability of the Ethereum blockchain and other blockchains. In the Ethereum network as well as other networks, users who make transactions compete in the bidding process so that their operations can be processed faster.

Simply put, the more fees paid to miners, the faster the user's transaction confirmation time. Unlike Bitcoin, Ethereum is not only used to transfer wealth belonging to users but it is a very complete blockchain and is capable of running DApps with complex operations.

However, the higher the complexity, the more mining power is required to carry out transactions. Therefore, it is commonplace to charge several hundred dollars to exchange tokens, especially in fast trades where within seconds it is possible to determine the profit or loss of the token to be exchanged or swapped.

To that end, Ethereum developers are trying to ease the burden by presenting the main solution, namely the new Ethereum Consensus Layer, ETH2.0. Ethereum founder Vitalik Buterin predicts that ETH2.0 will introduce scalability solutions such as sharding that could potentially increase transaction processing to close to 100,000 transactions per second.

Even so, efforts to achieve this will take a long time. Another option is to use a layer-2 solution such as Polygon or Loopring, where the transaction fee is less than 1 US dollar. To date, the Ethereum blockchain has tough competitors such as Binance Smart Chain (BSC) and Solana, where transaction fees in both networks are cheaper than Ethereum.