Ethereum is one of the most popular blockchains in the cryptocurrency world. Every day, a growing number of people join the network. ETH charge rates have long been a source of concern in the midst of this. During periods of significant network congestion, fee rates have typically increased. However, as the popularity of NFTs has grown, these costs have become out of hand.
Because minting an NFT costs substantially more, typical ETH transaction fees have increased in order to send. As a result, the fees that the average user must pay have risen. This problem has also been exacerbated by recent improvements. Fees have not been kept down by the London Hard Fork or EIP-1559. Instead, since the renovation, fees have risen dramatically.
The surge from August 22nd is the most striking. From then to now, Ethereum transaction costs have increased by nearly 200 percent. The average cost of a transaction has already surpassed $30. The network's average transaction charge was $10. As a result, the current increase is among the greatest in the network's history.
NFTs and decentralized exchanges (DEX) are included. Fees on these services have risen even faster, according to users. Fees on decentralized exchanges such as Uniswap have reached $300 per transaction. On platforms like OpenSea, consumers of NFT marketplaces have witnessed costs of over $1,000. This has sparked debate over the blockchain's future if fees are too high for the majority of users to transact on it.
Are Ethereum (ETH) assassins the solution?
There is a case to be made for a whole new blockchain to take Ethereum's place as the main smart contract platform. Given its prominence, its exorbitant fees are a source for concern for the entire crypto market. Other platforms are primed to fill any void left by Ethereum, which has fallen out of favor because to its consistently high costs. Cardano is one of these blockchain rivals.
Cardano's smart contracts feature will be available on September 12th. The network has a cheaper fee structure than Ethereum. Users will be able to accomplish the same things on Cardano that they can on Ethereum with the debut of Alonzo White. For a less expensive price. These will have DeFi and NFT capabilities. Allowing developers to build on the blockchain and provide users with DeFi services.
EOS, Polkadot, Solana, Terra, Tron, Avalanche, and others are competitors. The Binance Smart Chain is the most renowned. From the stables of the world's largest bitcoin exchange. These blockchains have the same functionality as the Ethereum blockchain. However, their lower fee options provide them an advantage over the top network.
The Ethereum team is very aware of what is going on. The switch to ETH 2.0 has been planned for years. The update, which is expected to be completed in 2022, will resolve the network's fee issue. Along with additional network scalability, safety, and efficiency challenges.
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