Monster fees make a comeback – After a few weeks of lull, exorbitant fees are back on Ethereum (ETH)
. For some, it’s complete incomprehension. Oh yes! Wasn’t the London hard fork supposed to solve this problem? In reality, the cause of the current situation is quite different.
A congestion that begins to tire
This is not the first time this year that the Ethereum network is facing a major congestion for several weeks. Indeed, too many transactions are sent on the network. The network is therefore struggling to process all of them. In fact, the mempool, a kind of queue of transactions waiting for validation, is getting longer. As a result, the cost of having a transaction validated in an acceptable time frame is skyrocketing.
According to Etherscan’s data, a classic transaction costs an average of 50 dollars to complete. On the other hand, interactions with smart contracts, such as a simple swap on Uniswap, cost on average… $150.
<img src=”//www.w3.org/2000/svg’%20viewBox=’0%200%200%200’%3E%3C/svg%3E” alt=’Average cost of a transaction and interaction with Uniswap on Ethereum” /><img src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/img_613939f1d0b92..png” alt=’Average cost of a transaction and interaction with Uniswap on Ethereum” />Average cost of a transaction and interaction with Uniswap on Ethereum – Source: Etherscan. <p>Once again, this makes the Ethereum network almost unusable for lambda users, not having a large wallet.</p> <p><a href=”https://journalducoin.com/FTX-CTA1″ target=”_blank” rel=”noopener”>>> Even imperfect, it’s impossible not to love Ethereum! Come trade some on the FTX reference platform<</a></p> <h2>An EIP 1559 not efficient enough?</h2> <p>On August 5, the Ethereum network underwent a major update with the <a href=”https://journalducoin.com/actualites/ethereum-hard-fork-london-millions-dollars-ether-mineurs/” target=”_self” rel=”noopener”>deployment of the London hard fork</a>. This long-awaited hard fork introduced, among other things, EIP 1559, which was intended to change the network’s fee system. In addition, this update also introduced the destruction of a portion of the transaction fee, known as the <em>base fee.</em></p> <p>Despite a fairly widespread belief, no reduction in transaction fees was to be expected from this EIP. However, a lull could be seen, especially with the doubling of the <em>gas limit</em> – the amount of gas that can be used in a block.</p> <p>This has effectively increased from 15 million to 30 million gwei per block. As the official Ethereum website reminds us, this<em>gas limit</em>determines the number of transactions that can be included in a block, as “the total amount of gas spent on all transactions in the block must be less than the block’s gas limit.” </p> <p>Unfortunately, this respite was short-lived and blocks quickly reached d
Average fill levels range from 50 to 100%. Whose fault is that? The NFTs!
NFTs: Ethereum’s new haunt
The NFT ecosystem on Ethereum has been in full swing for several weeks now.
Indeed, Opensea, the most used NFT marketplace on the network and the source of 15% of the gas used daily on Ethereum. In August, the latter recorded a record volume of $3.16 billion, an increase of 1,112% compared to July.
Monthly volume of NFT marketplaces on Ethereum – Source: The Block
A situation that could well be repeated in September, this one having already recorded a volume of more than $862 million, during its first week
Beyond the gas consumed by Opensea, each smart contract allowing to generate NFTs also consumes gas. As a result, the gas usage generated by NFTs is much higher than the 15% of daily gas used by OpenSea.
As an example, the new NFT project of the moment, “Loot (for adventurers)”,
alone consumes more than 2% of the total gas spent daily on Ethereum.
Fortunately, second-layer solutions, which aim to shift the load away from the main Ethereum blockchain, continue to grow. Offchain Labs, for example, has announced the launch of its Arbitrum solution for early September
If the fees on Ethereum quickly enrage users, it is also impossible not to see the phenomenal success of the network! To get and trade your first Ethers, come quickly register on this reference crypto exchangeA lifetime discount on your trading fees is waiting for you thanks to the JDC affiliate link.