The combined network fees to date for Ethereum have reached an interesting milestone. While the ecosystem is often criticized for its high gas fees, it is also one of the most active blockchains. To date, this has resulted in over $600 million in transaction fees.
Ethereum Transaction Fees Keep Rising
Historically speaking, Ethereum did not have much of a fee problem for most of its “life”. A flat line can be noted between early 2016 and late 2017. During the crypto craze of 2018 and the ICO stage, Ethereum transaction fees started getting out of hand for the first time. It was a rather problematic period, but things calmed down again eventually.
After July of 2018, the overall Ethereum transaction fees started normalizing again. Sending a transaction for $0.2 or less became the norm once again. All was fine and dandy in the land of Ethereum, until early 2020. From that point forward, the total network fees have continued to increase by leaps and bounds.
Fast forward to today, and it is not abnormal to see the seven-day total fee average spike to above 2,000 Ether. This is primarily due to the “gas guzzlers” on the network, such as Uniswap, Tether, and o thers. Additionally, there are many other dApps running on the blockchain today.
Combined with the recent DeFi craze, it is evident that this may not slow down again. With over $600 million paid in Ethereum transaction fees since the network’s inception, a core milestone has been reached. At this rate, it won’t take too long to reach $700 million either. The top 3 “gas guzzlers” alone add nearly $25 million in gas fees every month.
A Sign of Growth or a Growing Problem?
Over the past few months, there have been ample debates regarding Ethereum transaction fees, Moving funds on the network can often become incredibly expensive. During DeFi “peak moments”, transaction fees may be as high as $50. It is an unsustainable situation, to say the very least. Even for ERC-20 tokens, all network fees need to be paid with Ether.
Despite there being numerous layer-two scaling solutions, they are not widely used yet. It is possible to achieve much cheaper and faster transactions on this network with ease. All it takes is developers willing to integrate such solutions. Until that happens, the combined Ethereum transaction fees will keep rising at an alarming rate. Ethereum miners won’t mind that in the slightest.