April 11, 2021

Ethereum’s high gas fee crisis won’t be solved by EIP-1559: Coin Metrics report

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A report by analytics provider Coin Metrics has delved into the world of Ethererum transaction fees noting that they’re still at highest-ever levels and even a much touted approaching network upgrade is unlikely to alleviate the problem.

According to the Ethereum Gas Report by Coin Metrics, median fees on Ethereum have been consistently over $10 for most of 2021. Comparatively, the average Ethereum transaction fee reached just $5.70 at the height of the 2017/2018 bull run.

It attributed some of this increase to the increase in ETH prices themselves which will make gas more expensive. Since the beginning of 2021, ETH has surged 125% to current prices despite a correction of 19% from its all-time high of $2,050. However, over the same period, the median gas price has increased by 532%.

Different types of transactions require different amounts of gas — a simple ERC-20 token transfer uses much less gas than a complex smart contract operation for an automated market maker for example. However, it noted that rather than DeFi being the root cause of the high gas fees, it is simply more transactions in general.

“Since January 2020, the amount of gas used per transaction Title: Ethereum’s high gas fee crisis won’t be solved by EIP-1559: Coin Metrics report
Sourced From: cointelegraph.com/news/ethereum-s-high-gas-fee-crisis-won-t-be-solved-by-eip-1559-coin-metrics-report
Published Date: Wed, 24 Mar 2021 02:53:29 +0000

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