Ethereum Transfer Fees Fall from Recent Highs, L2 ETH Solutions Cheaper Between 46-97% – Blockchain

At the end of August, the gas costs of the Ethereum network skyrocketed, reaching a peak on September 7th. The average fee for an Ether transaction on September 7th was around $20 per transaction. Days later, Ether transaction fees have decreased to some extent as the median and average Ether fees have since been halved.

Ethereum fees are falling, transfer costs are cheaper

One of the biggest complaints people have with digital currencies is how much the transaction fee to send these assets can cost. Critics are not interested in the fact that Layer 1 Bitcoin ( BTC ) and Ethereum ( ETH ) Transactions can also be quite costly and unpredictable. The usual answer for Bitcoiners is the Layer 2 protocol, the Lightning Network, but there are also Layer 2 schemes for Ethereum ( ETH ) transactions.

First of all, a Layer 1 transaction processed onchain costs an Ethereum user between $3.39 and $18.74 per transaction. The offer of $3.39 is for a very low priority transaction as per Etherscan gas tracker statistics and the $18.74 comes from metrics recorded for an average Ethereum transaction, according to bitinfocharts.com. The same website also tracks the average Ether fee, which $9.29 at the time of writing. Data from the website l2fees.info indicates that a Layer 2 Ethereum fee is currently $4.46 per transaction.

These fees do not take into account smart contract interactions, which can be more costly. For example, Etherscan Gas Tracker statistics show that a typical ERC20 transfer is $10.48 and using Uniswap can cost a person $32.25 at the time of writing. This means that moving a token balance, interacting with a decentralized exchange (Dex), or using an NFT marketplace can be more costly than simply moving Ethereum from A to B. For this reason, Ethereum network competitors are nipping at the project’s heels.

Layer 2 Fees: Between 46-97% cheaper when sending Ether

Ethereum proponents have some defenses when it comes to high fees, and a vast majority of ETH Supporters believe that the Ethereum 2.0 upgrade will settle the matter. In addition, there are Layer 2 projects and concepts such as “ optimistic rollups “ and two specific projects optimism and Arbitrum use this technology. In addition, ether gas killers like hermez.io, aztec.network, starkware.co, loopring.org, zksync.io, and fuel.sh also aim to solve the transaction bottleneck and high fees.

Some of these projects are in use today, as Bitcoin.com News reported on Arbitrum's recent one $1.5 billion total value locked (TVL). The website l2fees.info shows the costs associated with these Ether gas killers, and although they are lower, some are still much higher than those of Ethereum network competitors. At the time of writing, a Loopring-based transaction will cost around $0.11 on September 12, according to statistics from l2fees.info. Zksync costs $0.18 to send a transaction and Polygon Hermez costs $0.40 per transaction.

At the time of writing, an Arbitrum One transaction costs $1.61 and an Optimism transaction costs $2.38. Fees on Ethereum network competitor blockchains are lower than sending a regular Ether transaction. Statistics from Messari.io note that the average transaction fee on September 6th for the crypto asset cardano ( ADA ) was $0.59 per transaction.

Blockchain Solana (SOL) states on the project's website that the average SOL sending is $0.00025 per transaction. Meanwhile, the sister site of l2fees.info, cryptofees.info, shows that $22 million in Ether fees were collected on September 12. Uniswap recorded $3.3 million in fees and $4.9 million in fees in the last seven days.

Bitcoin ( BTC ) saw fees worth $448,000 and BTC Miners have collected $680,000 in fees in the last week. While Optimism recorded $285,000 in the last day, Avalanche (AVAX) recorded around $216,607 in average 24-hour fees. Arbitrum One's fees in the last 24 hours were around $90,000.

What are your thoughts on the easing of Ethereum fees and the fees associated with Layer 2 solutions? Let us know your thoughts on this topic in the comments below.

Photo credits: Shutterstock, Pixabay, Wiki Commons, etherscan, l2fees.info, cryptofees.info,