FameEX Hot Topics | Ethereum Users Encounter Rising Fees as On-Chain Transaction Costs Increase

Since September 15, 2024, on-chain fees on the Ethereum network have risen significantly, increasing from $1 per transaction to $5.08 by September 20. Although fees dipped slightly to just over $4 on September 23, the average cost per transaction surged again, reaching 0.0027 ETH (about $7.06) by Tuesday morning.

Over the past week, Ethereum (ETH) has outperformed Bitcoin (BTC) in market gains, with ETH rising by 15.9% compared to BTC’s 9% increase. This price jump has coincided with increased on-chain fees, with Ethereum transactions averaging $7.06 each. According to Etherscan’s gas tracker, a typical high-priority Ethereum transaction fee is currently around $1.07 or 14.411 gwei. Etherscan has even introduced decimal points for gwei estimates due to previously lower fees.

Additionally, more complex Ethereum transactions are experiencing higher costs: token swaps are averaging $37.69, NFT sales are costing about $63.70, bridging fees stand at $12.12, and borrowing fees reach $31.98. In contrast, Bitcoin fees have remained relatively stable, averaging 5 satoshis per virtual byte (sat/vB), or around $0.848 per transaction. High-priority Bitcoin transaction fees are as low as $0.18 or 2 sat/vB, according to mempool.space. Despite Ethereum's rising fees, the network is still inflationary at 0.367% annually.

Since the London hard fork, which introduced a major fee-burning mechanism, Ethereum's supply has increased by 0.858% annually. Since the fork on August 5, 2021, a total of 3,153,785 ETH has been issued, bringing the current supply to over 120 million ETH. If Ethereum had continued using the proof-of-work (PoW) system, the supply would have expanded by 3.23%, adding another 11.2 million ETH. However, due to the London upgrade, about 4.3 million ETH has been burned, resulting in a net issuance of just 7.53 million ETH.

In summary, Ethereum's on-chain transaction costs have surged alongside its price gains, affecting both basic and complex transactions, while Bitcoin’s fees remain comparatively stable. The fee-burning mechanism from the London hard fork continues to influence Ethereum's supply growth, limiting its overall inflation.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.