Gas fees, or the payments made by users to perform a transaction on the Ethereum network, have been a dilemma for most Ethereum users. While they are necessary for the functioning of the network, the exorbitant gas fees have been a turn-off for many.
A year ago, Ethereum proposed a network transition to proof-of-stake, which is less energy-hungry, and theoretically would lead to a reduction in the network’s gas prices.
Gas Prices Reduce Despite PoS Transition Delay
As the Kintsugi Testnet went live on December 20, Ethereum revealed that the PoS transition will be delayed until June 2022. However, while the PoS transition has been delayed, the gas fees on the network are already dropping.
There has been a steady drop in the Ethereum gas fees, which has now reached its lowest level in the past six months.
In the last seven weeks, the Ethereum network has seen a 67% drop in the average price of transaction fees – from $62 on November 9 to $20.61 on December 27.
The average transaction fees on the Ethereum Network in 2021
On December 27, metrics show the average fee spent on the Ethereum network is now $20.61 or 0.0051 Ether per transaction.
On the other hand, the median ether fee has declined by 70% in the same period. On November 9, the median ether fee which was $34.28 per transaction, is now 0.0032 ETH or $10.43.
The median transaction fees on the Ethereum Network in 2021
On The Flipside
- Layer 2 solutions still provide cheaper – with Loopring offering as cheap as $0.16 per ether transfer and Polygon Hermez charging $0.25
Why You Should Care?
The drastic reduction of Ethereum gas fees on Ethereum proves that the problem can be solved when the network migrates to PoS.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.