Cryptocurrency News

Ethereum Transaction Fees Skyrockets Even As Asset Faces Corrections

Ethereum is one of the most impressive digital assets out there, as it showed impressive gains even as the industry saw a dive a few weeks ago. However, the cryptos network is s source of concern to traders using the platform as the transaction fee increases at random intervals.

The recent price fall might have caused the average gas fee to be around $30, which is quite higher than last month’s average, which was barely $2. While retail traders are looking for alternatives to get their transaction running as Binance Smart Contract recorded a higher number of addresses, it’s still worrisome that the blockchain’s fee keeps going up even as traffic reduces.

ETH blockchain charges around $50 for high priority transactions

The network’s transaction fee is now as high as $50 with the recent price correction witnessed by the whole digital asset industry. Ethereum went as low as $1,500 at some point before showing some recovery around the $1,700 range, which is about a 12% correction within a day.

Unfortunately, Ethereum holders and decentralized exchange token traders might have to pay large amounts to get their transactions settled as the blockchain charges a higher fee for transactions. In the past few weeks, the gas fee has been increasing due to the large DeFi projects and traffic on the network. Unfortunately, the fees are not dropping as traders pay as high as $50 and above to do some transactions.

A crypto analytics platform, Etherscan, explained that Ethereum now charges around $1,400 Gwei for fast transactions, which is around $50 in fiat currency. The industry measures the gas fee in Gwei. Even for those who want average speed transactions, traders would have to pay an average of around $30 for settlement.

Sources have noticed that the new price increase has helped even average speed transactions see swift settlements, even within 60 seconds. If users want a low-speed transaction, the network will charge an average of $26, and the network would settle the transaction within an hour.

Uniswap transaction fees are over $200

The industry uses different time-frames to predict how long the transaction would take, and most traders use the average and low-speed transactions to avoid high gas fees. However, users cannot ignore the high prices they would have to pay to get their jobs done, and this worries everyone using the Ethereum blockchain.

Although Bitcoin also saw a rise in its transaction fees, the king coin’s network does not charge as high as Ethereum’s. Users can pick their preferred speed with the categories and expect their transaction to be settled within the time-frame. High-speed transactions are prioritized, causing the platform to charge very high to settle them. The transactions are also settled very fast, which maximizes time spent.

While Ethereum holders battle with the transaction fees, DEX token traders are finding the situation much worse. Transactions on Uniswap, which is within the Ethereum blockchain, could cost as high as $288, with very high dependence on the transaction’s priority. Only large scale traders are recording gains with these exorbitant prices, causing discomfort for daily traders.

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