Ethereum transaction fees are one of the biggest problems of the Ethereum network. A few weeks ago, when the Ethereum price broke a record, transaction fees on the Ethereum network also broke record after record. However, with the sharp decline in the market, it is thought that the activities in the network have decreased, and Ethereum transaction fees have been recorded at the lowest level since January.
According to BitInfoCharts, which measures data in the cryptocurrency market, average transaction fees on the Ethereum network hit $7.37, the lowest level since January.
Ethereum transaction fees are paid to miners who transact on the Ethereum blockchain. Transaction fees, which increase during periods of high transactions and heavy traffic, decrease with the decrease in network density. Miner supply and merchant demand determine transaction fees. When demand exceeds supply, the amount of transaction fees miners will ask for increases.
On May 12, when the Ethereum price hit $4,363 and gained ATH, miners did just that. On May 12, transaction fees on the network reached $ 69. Then, with the market crash that started under the leadership of Bitcoin, activities on the blockchain began to decrease and transaction fees began to decline.
While it seems relatively good that Ethereum transaction fees have dropped to $7.37, they are still quite high compared to other cryptocurrencies. ETH transaction fee, which is less than Bitcoin’s average transaction fee of $ 11, is considerably higher than Litecoin’s average transaction fee of $ 0.02. Dogecoin, which we hear often this year and Elon Musk’s favorite, also has a transaction fee of $ 0.8.
Expected Ethereum upgrades
The issue of Ethereum transaction fees is one of the biggest problems of the Ethereum network. This problem is expected to be largely overcome with the upgrades expected in the coming period. The first of the upcoming upgrades is the EIP-1559 upgrade. With the EIP-1559 upgrade, it is expected that the incineration process will be performed instead of the transaction fees being paid to the miners. The upgrade, which is expected to launch on July 14, is expected to reduce network costs and eliminate Ethereum transaction fees.
The second and most important upgrade to the network is the transition to Ethereum 2.0. With Ethereum 2.0, the proof of work system called Proof of Work (PoW) will be transitioned to the Proof of Stake (PoS) proof of stock system. Ethereum 2.0 is described as a groundbreaking upgrade for ETH.