Ethereum gas prices rose 13.71% over the past two weeks, with the average rate rising from $4.52 per transaction to $5.14 per transfer on February 3, 2023. Even though Ethereum’s price has seen significant growth this year, gas prices on its network have also seen similar increases. With demand for Ethereum’s capabilities surging, it remains to be seen if these fee hikes will ultimately hinder its growth.
Ethereum gas fees continue to increase
Reaching $1,701 per coin on Thursday, February 2, 2023,Ethereum (ETH)has reached new heights, soaring to its highest price this year. However, despite the rise in Ethereum token value, the cost of transmitting cryptocurrency on-chain has also risen.
On January 18, 2023, data from bitinfocharts.com showed that the average transfer fee was 0.0029 for ETHor $4.52 per transaction. After just 15 days, the transfer fee rose to 0.0031; ETHor $5.14 pertransaction.
The median transaction fee was about $1.96 per transaction on January 18, 2023 and jumped 20% to$2.36 per transaction on February 3, 2023. Ether’s median transfer fee is now 0.0014. eth
Transactions on Opensea are currently about $3.89, while swaps on decentralized exchanges (dex) are about $10.02 per transaction. On the Ethereum network, the cost to trade in ERC20 tokens likeUSDTor USDC is about $2.94 per transfer on Feb 3.
Explore L2 Alternatives; Ethereum Transactions vs. Optimism and Arbitrum Networks
According to Dune Analytics data,the average cost of sending a transaction using the Ethereum scaling solution Optimism is about $0.288 per transaction, while the L2 scaling network Arbitrum about $0.182 per transfer on February 3.
The total number of L2 transactions using Arbitrum and Optimism has been declining since January 15, 2023; two days ago, on February 1, 2023, Ethereum recorded 1.06 million transactions, and the The total number of transactions was 902,254.
According to the data, the cost to transfer 1.06 million transactions on ethereum at a median cost of $2.36 per transaction is $2.49 million. However, if these same transactions were moved to Optimism at a rate of $0.288 per transaction, the fee would be $307,680, 87.67% lower.
If transactions were moved to Arbitrum at the rate of $0.182 per transfer, the cost would be $193,720, 92.19% lower than Ethereum. While Ethereum recorded 1.06 million transactions at a much higher cost, Optimism recorded 212,743 transfers and Arbitrum 689,511 transfers.
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