THELOGICALINDIAN - After the ether badge surged accomplished the 1000 mark on January 3 the boilerplate transaction fee on the arrangement analogously soared to a new alltime aerial ATH of 1741 some 24 hours after Although the boilerplate fee has back aloof abstracts on January 8 shows that the latest boilerplate fee at 979 This amount still able-bodied aloft the 356 apparent on the aboriginal day of the new year
Resurgent ETH fees
Before the new ATH, the Ethereum network’s antecedent accomplished boilerplate fee of $12.54 was recorded on September 1, 2020. At that time, some crypto enthusiasts attributed this billow to the decentralized accounts (defi) hype. However, as the defi aberration began to dissipate, ETH transaction fees gradually dropped.
However, as contempo data shows, the network’s transaction fees, which averaged beneath than $5 for abundant of Q4 of 2020, accept now backward aloft $9 for all but two canicule of January 2021. This acknowledgment of aerial fees on the arrangement comes added than a ages afterwards ETH’s clearing to a affidavit of pale (POS) accord mechanism.
Meanwhile, the latest abstracts shows that at the accepted fee levels, it now costs the aforementioned or alike beneath to transact on the BTC arrangement than on the ETH network. To illustrate, in the aeon during which ETH fees surged to the new ATH, transaction fees on the BTC accept remained aural the aforementioned range. For instance, during the absolute Q4 period, fees on the BTC arrangement accept alone ailing at $13.41 on October 31.
For abundant of Q4 of 2020, the fees on the Bitcoin arrangement accept fluctuated amid the October 31 aerial of $13.41 and $1.44 the everyman boilerplate in that period. Similarly, on the BCH network, whose crypto is up by added than 100% back October 1, fees abide beneath than $0.01 per transaction.
Upgrade to Fix Problem of High Fees
Meanwhile, Kamil Brejcha, Founder at Dexfin offers the accessible acumen why ETH fees accept acicular and how advancing updates will fix this. Brejcha explains:
“We face aerial ETH fees because the Ethereum arrangement still relies on miners to be block producers. The accepted amend is alleged the Beacon chain, which allows depositing Ethereum for staking nodes. These nodes run on their own blockchain, which is not yet allotment of the mainnet.”
The Dexfin architect additionally capacity the advance action which starts with the Beacon chain. In 2024, the abutting Shard alternation will chase afore the amalgamation of the two in the year 2022 or later. After that, the “transaction acceleration should advance more, additionally acid the gas fee.”
What do you anticipate is causing the fees on the ETH arrangement to go up? Tell us your thoughts in the comments area below.
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