Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days – Bitcoin News

After a short spike in transaction fees, Ethereum’s average fee jumped to $43 per transfer on April 5, but is now falling again. The average ether fee is close to falling below $10 per transaction 12 days later and median fees have fallen below $4 per transaction. In addition, the L2 transaction fee has dropped significantly in recent days. The current lowest L2 rate is $0.03 per transfer.

Inflation in average and median Ethereum charges

From mid-March up 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. Today, 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.

Although the average network fee can be dynamic, it isn’t a science and changes constantly. 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. It is a reflection of the fact that network users spend less on ethereum to have their transactions verified. The current median ethereum gas cost is 0.0011ETH, or $3.47 per transaction.

Ethereum users who pay median-sized network fees have to pay 66.37% more than the average gas fee. As with the average fee of $12.25 per transaction 12 days back, the median-sized Ethereum fee jumped to $10.31 per transfer in April. As mentioned, both the median and average fees are simply how much it costs to send Ethereum. Sending an ERC20 token, swapping tokens, and interfacing with smart contracts will all cost more.

Ethereum L2 fees slide lower, Bitcoin fees 88-90% less

According to statistics, layer 2 (L2) fees are much less expensive in recent years. The L2 rollup service Metis Network, which costs $0.03 per transfer, is currently the most affordable. This means that transactions made on Metis Network 99.70% less expensive than onchain transactions fees. It will cost $0.16 to exchange ERC20 tokens using Metis.

Loopring costs only $0.05 for ethereum (ETH) and is therefore the best L2 rail. Loopring costs $0.76 to exchange tokens. Zksync charges $0.05 per transaction to send Ethereum and $0.05 for coins. Swapping coins costs around $0.13 per transfer. Participants in L2 can leverage Boba Network and Polygon Hermez as well as Aribitrum, Optimism or Polygon Hermez. Aribitrum One is an optimist rollup solution that costs $0.45 to send Ethereum per transaction, and $0.62 for coins to be swapped.

Onchain fees for Ethereum today are less than bitcoin (BTC), but transfer fees to Bitcoin (BTC), are far lower. As of the writing date, BTC send costs average 0.000000084 BTC per byte. That’s 0.000028 BTC, or $1.15 per transfer. BTC’s average fee is 88.85% higher than the average ETH fee. Only 0.0000082 BTC is required to send a Bitcoin transaction. That’s 90.43% less than what the Ethereum median fee costs.

How do you feel about current costs to send ethereum. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.