​Ethereum’s network fees are gradually becoming a main concern, and more people are aware they are paying absurd fees to carry out transactions on the network. The amount of gas being spend on Ethereum​ has attained an unprecedented high with a daily average of $6.8 million going to fees alone, as per information collected by glassnode.

Etherscan currently advocates for a gas price of 350 gwei for a 20-second transaction waiting time, which means that people are paying up to $50 dollars to carry out transactions on Ethereum​.

Transaction Fees at an All-Time High

One tired blockchain and crypto enthusiast is now asking Cardano’s creator Charles Hoskinson to roll out smart contracts and native assets faster so that all the DeFi business on Ethereum​ can be transferred to Cardano.

“$ETH fees are RIDICULOUS. The sooner we can start porting DeFi apps across from Ethereum over to #Cardano, the better. Now is our opportunity to strike @IOHK_Charles. Imagine $ADA adoption if consumers have an alternative to paying up to$50 per transaction using ETH.”

Hoskinson, who’s also Ethereum’s co-founder, seems to agree with this idea, suggesting that such high fees are not practicable, and Cardano will take care of it.

“I can’t imagine it, which is why I built Cardano,” he said.

ETH Fees Will Keep Increasing With More Network Activity

The gas price on Ethereum is calculated in ether subunits known as gwei. Although each transaction is required to pay a gas fee in order to be processed, miners usually have an opinion on what the gas should be.

When the network activity surges, miners can ‘motivate’ people into paying a higher transaction fee in order to have their transactions handled faster. Increased wallet addresses and DeFi activity have been generating higher gas on the Ethereum​ network, and even though the Ethereum​ community is content with the soaring ETH prices, transacting on the network is slowly becoming untenable.

Data from Blockchair has charted unprecedented high ETH gas prices for the last three months, which has also received a lot of complaints from people who’d wish they didn’t have to spend as much as they did while carrying out transactions on Ethereum​.

“Tbh spent more on $ETH tx fees in the past three months that I’ve spent on bank service charge over my entire lifetime,” a user said.

Transaction fees are only going to increase with more DeFi activity, and while ETH 2.0 will attempt to fix this issue, some feel that it might take a while to dethrone Ethereum with better and already accessible solutions.

“I’ve changed my mind after using a dozen of DeFi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX,” another DeFi user said.

3 Comments

  • Bianca Steele
    18/08/, 10:37 AM

    Just read an article where ValB discussed ETH 2.0 being much more difficult to implement than was originally contemplated. Not a big problem for those that are going to HODL in DeFi but those making their bones in price speculation will have to make some major adjustments.
    I used to make out just fine parlaying 5% changes in value into profits while paying 1% fees in the buy/sell transactions and then moving the results to my cash-out addresses for small fees. Now I have to wait for a 10-15% shift to make the same as I did with a 5% shift, because of transfer fees.
    Thankfully, one can *lose* another 1/2% turning the profits into BTC and transferring the assets to one’s cash-out accounts and still come out ahead.
    Getting harder to jump through all the hoops required to trade/shift assets from one form to another.
    Can only trade this asset for BNB…0.5 vig… Darn, the one I want to buy has to be paid for with BTC…0.5 vig to turn into BTC and then 0.5% to buy. Oops, have to sell that one for USDT…0.5% vig…in order to buy another one that I expect to head upwards. Gosh, looks like good money in the next few days on *that* one, but it is on a different exchange so I have to convert to BTC…0.5% vig…and transfer it, then sell the BTC…0.5% vig…so that I can buy it with ETH.
    Been doing crypto for five years and I still feel like a Newbie…

    • Bianca Steele
      18/08/, 10:39 AM

      p.s. – I ‘skim’ the cream from my crypto profits and use it to buy gold. Momma didn’t raise no fool…

  • Thomas Wendel
    19/08/, 11:22 AM

    Will never buy this 75%-preminded-Vitalik-scam-coin ETH.
    ETH is misdesigned, i’ll buy even more Cardano (ADA)! HAHAHAHA!

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