Ethereum gas prices will always remain a point of concern. It is too expensive for a network with such technical prowess and benefits for any transfer or transaction. New statistics by Dune Analytics confirm things are not looking great and may continue to remain problematic for a while.
Ethereum Gas Fees Breakdown
Over on DeFiPrime, the team has put together some exciting data from Dune Analytics about Ethereum gas fees. Users will face different network costs depending on which activity they aim to complete, which is strange. After all, network fees should always remain the same for any activity, yet that is not the case with Ethereum. Solving these problems is crucial, yet it may take until Ethereum 2.0 is fully up and running.
In the chart below, it is obvious which transactions will incur the higher gas fees. Regular ETH or ERC20 transfers are already expensive at $10.45 and $20.50, respectively. Paying such exuberant cots to move value across the network is one reason why this blockchain won’t benefit from broader mainstream adoption just yet.
Things become progressively worse when trying to use Uniswap or Compound. The leading DeFi platforms in this industry charge users an arm and a leg to perform any action. Paying up to $94.17 for a deposit over the Ethereum network is laughable. Rather than being cheaper than traditional finance, these platforms are more expensive by several factors.
Unfortunately, these concerns regarding Ethereum gas fees are nothing new. The costs have been high for years and show no sign of coming day as of yet. While the ongoing network upgrades to introduce sharding may offer relief, it may take a year or longer for that technology to become accessible. Until then, users either need to pay high gas fees or simply leave things be.
Averages Keep Going Up
Looking at a slightly different chart, one can see the average gas fees on Ethereum keep rising. The average has surpassed 100 gas regularly and spiked over 200 twice in the past month. Although this is a sign of how popular the network has become in recent years, such numbers are not acceptable. No one wants to pay more than necessary.
One other factor to look at is how the Ethereum network blocks are filled with data. If there is a gap for more transactions, the gas fees can’t be as high as today. The data confirms every block is filled to near capacity at all times, making life more difficult for those who wish to avoid high costs. Keeping that in mind, a gas fee reduction seems incredibly unlikely.
Despite these concerns, the Ethereum price keeps performing admirably. It has successfully surpassed $1.700 for the first time in history, although traders may negate that growth in the coming hours. However, if it is too expensive to move ETH to an exchange, there may not be sufficient liquidity on the ell side to keep the price down for long. Every downside has an upside, albeit not necessarily in the way one may like.