Currently, Ethereum’s average transaction fees range between 1 and 2 dollarsthe lowest number since December 2020.
For the past two years, Ethereum’s gas charges have been hovering around $ 40 and peaked just 2 months ago, with average cost of $ 196 on May 1, 2022, according to data provided by BitInfoCharts.
This fall in fees is a big help for Ethereum blockchain users. But is it a permanent decline or is it just a phase?
High transaction fees can be a barrier to mainstream adoption
The high gas charges of Ethereum network composed Big problem and a real barrier for new users, discouraging them from making transactions on the blockchain.
In fact, for someone who is not accustomed to this and does not have a lot of funds, it can be a bit confusing to pay transaction fees sometimes higher than the transaction itself, even discouraging.
This may be especially true in the middle of NFTs, during free mints or at very low prices, which can ultimately bring cost. more than a hundred dollarsand this, except for the gas charges.
Faced with this, many people abandoned Ethereum, turning to blockchain at a much lower cost like Solana or Avalanche.
So the lower transaction fees on the Ethereum blockchain seem to be great news and facilitate mainstream public acceptance, provided it is sustainable.
What are the reasons for this reduction in fees?
But then, how can this sudden drop in transaction fees on the Ethereum network be explained? Mainly by the equally significant drop in daily transactions.
In fact, according to Cointelegraph, NFT sales also hit their lowest in more than a year on Saturday. More generally, NFTs were recorded in their entirety their worst performance during June 2022with a total number of daily sales of about 20,000.
In addition, the reduction in the price of Ethereum also has a direct impact on reducing the cost of fees, logically.
Lower transaction fees on ETH: fleeting pleasure?
Anyway, this means that this reduction in gas charges is actually the result of a combination of circumstances and is not really controlled by anyone.
Once the market trend reverses and the excitement around NFTs returns, charges on the ETH network are likely to rise againit is very disappointing for its users.
In November 2021, Vitalik Buterin, co – founder of Ethereum, proposed a temporary solution to overcome the huge charges levied on the Ethereum network. Title EIP-4488The objective was to reduce roll – over costs by five and to establish a call data limit per block.
However, no lasting solution it has not yet been discovered in order to definitively remedy these excess costs, even when many transactions are carried out simultaneously.
Crypto-assets are a risky investment.