Ethereum transaction fees in 2021 have indeed been record-high. Take February 22 as an example: you had to pay over $600 to exchange tokens on a decentralized platform Uniswap. With that being said, we paid $150 to swap tokens on that day as it depended on the network load at a particular moment of time, but still the numbers were impressive.
NFT transactions cost even more. The reason is simple: NFTs require a lot of resources from the network which is directly proportional to how much gas is used and how much a transaction costs.
Let’s see the cost of a transaction in ETH blockchain at the time of writing. A fast Ether transaction costs $4.48, fast ERC20 token transaction costs $11, and transaction on Uniswap decentralized exchange costs $39. Selling NFTs on the previously discussed OpenSea exchange costs $43.
NFTs have been gaining more and more in popularity. Here is an NFT trading chart since January 2018. Notice the 2021 leap.
As a result, the blockchain has been constantly overloaded. Below you can see Ethereum’s average fee chart. The peak value of $52 was registered on November 3, 2021.
So transactions in ETH blockchain have been, and still are, expensive compared with other popular networks like Solana and Avalanche. And there is more to it.
Ethereum Transaction Fees
ETH miners started earning more thanks to rising fees. Plus, mining pools allowed miners to include transactions in blocks at a minimum cost.
So not only miners earned more, they could also get their reward almost for free. For example, the 2Miners pool used to cover fees for sending rewards to ETH miners.
This has changed on August 5, 2021. Ethereum has performed the London upgrade and implemented ETH gas fee burning. Plus, due to the base fee introduction, it has become impossible for pools to pay out rewards at a minimum cost.
2Miners came up with a solution that was simple and genius at the same time. 2Miners started converting ETH miner rewards to Bitcoin or Nano and sending them to user wallets thus minimizing transaction fees. Read more about it here.
The solution has become quite popular. As of now, there are over 159 thousand miners in the 2Miners pool. 119 thousand of them mine ETH.
Ethereum Classic is the second most popular cryptocurrency on 2Miners, and now Ethereum Classic miners can benefit from the same solution. Ethereum Classic is becoming more and more popular among miners thanks to the growing mining profitability. Take a look at the mining…
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