In a report exploring one of the most talked about topics within the community, namely the high fees on the Ethereum network, CoinMetrics suggests that the costs now are roughly two-times higher than during the 2017/2018 run.
However, the paper alerted that the upcoming EIP-1559 upgrade may not solve the issues.
Ethereum Fees: Then and Now
The Ethereum blockchain is probably the most widely-utilized network in the cryptocurrency space. Nevertheless, being the underlying technology of the two hottest trends– DeFi and NFTs– while also having various stablecoins running on top of it has actually triggered numerous problems, mainly with scalability.
This led to substantial hold-ups when transacting and, as mentioned above, abnormally high transaction charges. CryptoPotato reported prior to some severe cases when the typical costs went to new highs of over $30.
In its most current report on ETH costs, CoinMetrics took a look at the distinctions in between the continuous bull cycle and the previous one in late 2017 and early 2018. Back then, the Ethereum network was also highly-employed, especially during the ICO craze.
Nonetheless, the file reveals that the average deal charge three years earlier was $5.70. The situation now is rather different, as the average expenses have been greater than that quantity every day since January 18th, 2021. In addition, the paper checks out that the median transaction cost now has been above $10 for most of the year.