The fees charged by Ethereum remain high because the network sees some of highest levels of traffic. Every day, Ethereum transactions exceed billions. Each transaction is charged at a greater than average fee. The fee structure that has caused concerns among users does not seem to be changing, however there appears to be light at end of tunnel.
The average transaction fee to send Ethereum transactions has fallen significantly in recent weeks. The average transaction fee of ETH transactions has dropped to 35% over the last week. However, it is still higher than other blockchains.
Ethereum Fees are Down
BitInfoCharts data shows that Ethereum fees have fallen over the last week. The drop of 35% in fee rates corresponds with a decrease of around $50 per transaction. But, fees remain high on the blockchain. Last week transaction fees averaged $50 per transaction. The average transaction fee has dropped to $35 due to the decrease in recent weeks.
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Although this is not surprising given how much activity blockchain houses, it still remains high. The report states that Ethereum users spend approximately $40M per day on fees. Cardano, however, sees only $87K of fees per annum, despite having almost identical transaction volumes to ethereum.
Source: ETHUSD at TradingView.com| Source: ETHUSD on TradingView.com
It costs approximately 0.0047ETH to transfer an ETH, or $14.78 per transaction. This is significantly higher than other major blockchains. ETH miners receive some of their highest miner rewards ahead of Bitcoin miners. The fee structure will be fixed in the transition to ETH 2.0, which is anticipated to resolve this problem.
Is ETH Ready to Get a Pump?
This could be good news for digital assets as it will lead to a decrease in transaction costs. Transaction fees falling would make it possible to process transactions faster. With transaction fees falling, this could mean that investors prefer to retain their digital assets, rather than moving them around. This could lead to consolidation and accumulation by these investors.
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Because less ETH moves on the network onto exchanges to be sold, supply is down on these exchanges. Most often, periods of notable recovery are preceded with periods of prolonged accumulation where investors decide to keep their existing holdings.
In addition to this, the price of the digital currency has been falling for some time and may soon correct, ethereum could be poised for a rebound towards $3,500.