Gas Prices to Move Ethereum Have Dropped to 76% in 12 Days

Gas Prices to Move Ethereum Have Dropped to 76% in 12 Days

 

There is a steep slide in transaction fees, after a brief sharp spike. Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5, rocketing to $43 per transfer. Twelve days later, average ether fees are close to dropping below $10 per transaction, and median-sized fees have slid below $4 per transaction. The layer two (L2) transaction fees have also dropped in recent times, as the lowest L2 rate today is $0.03 per transfer. 

The Average and Median Ethereum Fees have Dropped

Network fees have been climbing from mid-March until the first week of April. Ethereum’s average network fees rose from a low of $5.98 per transfer to $43.41 on April 5, 2022. That’s an increase of 625%, but after April 5, the average ether gas fee started to drop once again to much lower levels. On April 17, 2022, Ethereum’s average network fee to simply send ETH onchain via layer one (L2), is 0.0034 ETH, or $10.32 per transfer.

The average network fee is dynamic, and it is always subject to change. It’s also not a hard mandate, as the average fee simply represents the average amount of ether users are currently willing to pay to get their ethereum transactions confirmed. The median-sized ethereum transfer fee reflects the fact that network users are paying less than the average to get their ethereum transactions confirmed. On April 17, the median-sized ethereum gas fee is 0.0011 ETH, or $3.47 per transaction.

Users paying median-sized network fees are paying 66.37% less than those willing to pay the average gas fee. Similar to the average fee 12 days ago, the median-sized ether fee spiked to $10.31 per transfer on April 5. The average and median fees are simply the cost of sending ether, as sending an ERC20 token or swapping a token and interacting with a smart contract is likely to cost a lot more.

Ethereum L2 Fees Slide Lower, Bitcoin Fees Falls 88-90% Lower

Data on Sunday indicate that layer two (L2) fees have dropped much lower in recent times as well. The L2 rollup solution Metis Network offers was the cheapest on Sunday with $0.03 cost per transfer. Essentially, that means transactions on the Metis Network are 99.70% cheaper than the average onchain transaction fee. In order to swap ERC20 tokens, it will cost $0.16 per transaction using Metis today.

Loopring is the second least expensive L2 rail to use this weekend, as it costs $0.05 to send ethereum (ETH). The cost of swapping tokens using Loopring is $0.76. Sending ether and swapping coins will cost approximately $0.13 per transaction. L2 participants can also leverage Boba Network, Optimism, Polygon Hermez, Aribitrum, and the Aztec Network as well. The optimistic rollup solution, Aribitrum One, currently costs $0.45 to send ether per transaction, and to swap coins it costs $0.62 per transaction.

While onchain fees on Ethereum are lower today, bitcoin (BTC) transfer fees are much lower onchain in comparison. The cost of sending BTC on average is 0.000000084 BTC per byte, which equates to 0.000028 BTC or $1.15 per transaction. The average-sized BTC fee is 88.85% lower than the average ETH fee. Median-sized fees on the Bitcoin network was only 0.0000082 BTC or $0.332 per transfer on Sunday, which is 90.43% cheaper than the median-sized fees on Ethereum.