fbpx

Despite Proof of Stake Delay, Ethereum Gas Fees Have Dropped By 67% in the Last Seven Weeks

Gas fees, the payments made by users to perform a transaction on the Ethereum network, have been a consistent hurdle for most Ethereum users since the network’s inception. While they are necessary for the network to function, the exorbitant level of its gas fees have been a turn-off for many.

A year ago, Ethereum proposed a network transition to proof of stake, which is more energy efficient than the current proof of work model, and would theoretically lead to a reduction in the network’s gas prices.

Gas Prices Reduce Despite Delays to PoS Transition

As the Kintsugi Testnet went live on December 20th, Ethereum revealed that the PoS transition will be delayed until June 2022. However, while the PoS transition has been delayed, gas fees on the network are already dropping.

There has been a steady drop in the level of Ethereum’s gas fees, which has now reached its lowest level of the past six months. 

In the last seven weeks, the Ethereum network has seen a 67% drop in the average price of transaction fees – from $62 on November 9th, to $20.61 on December 27th.

The average transaction fees on the Ethereum Network in 2021

On December 27th, metrics show that the average fee spent on the Ethereum network is now $20.61, or 0.0051 Ether per transaction. 

To add to this, the median ether fee has also declined by 70% in the same period. On November 9th, the median ether fee, which was previously $34.28 per transaction, is now 0.0032 ETH or $10.43.

The median transaction fees on the Ethereum Network in 2021

On the Flipside

  • Layer 2 solutions still provide a cheaper alternative, with Loopring boasting fees of as little as $0.16 per ether transfer, and Polygon Hermez charging $0.25.

Why You Should Care

The drastic reduction in Ethereum’s gas fees on the Ethereum network proves that the problem can be solved when the network eventually migrates to a PoS consensus mechanism.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

    You can always unsubscribe with just 1 click.

    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

    Rate This Article
    In order to improve, we give you the opportunity to rate DailyCoin content
    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.