If there is one thing to take away from the 2017 ICO craze, it is how it inflated gas fees. That situation is no different during 2020’s DeFi craze. Some wallets will, as a default setting, currently charge $155 in transaction fees.
Exuberant Gas Fees
As the Ethereum ecosystem grows and evolves, more services and platforms will come online. Although that is a good thing, the network clearly isn’t designed to handle it. As a result, the transaction fees- or gas – tend to spiral out of control. Things are not improving either, as the gwei required for transactions keeps rising at an alarming rate.
According to ETHGasstation, it currently takes 204 gwei for a cheap transaction. The average sits at 217 gwei, and the fastest option requires 239 gwei. In theory, this is not problematic for users setting the gas at 21,000 or lower. Even at 21,000 gas, the average transaction will require a fee of $1.75.
Unfortunately, not everyone will conduct transactions at 21,000 gas. A lot of the common wallets, including MetaMask, will suggest an entirely different rate. It is not uncommon to see its gas setting spike to 150,000 or higher, especially when using DeFi platforms. That significantly buffs the transaction fee. In some cases, it will even go as high as $155, which is an absurd amount.
Solving that issue is not easy. Metamask users can adjust the gwei and gas rates for every transaction. Not everyone is familiar with this option, however, It is something that should be made more accessible, either now or in the future. Those not able to explore this option will often spend far too much on Ether transactions.
Will Things Improve?
Considering how this is the second major wave of gas and gwei inflation,no real improvements are expected. Once Ethereum 2.0 launches, things may begin to improve slightly. However, the launch of this upgrade remains a matter of debate. It should occur at some point in 2020, but the exact date remains to be determined.
The wallet situation, on the other hand, is a different matter altogether. It would be easier if they advised the lowest setting by default. Giving users an option to speed up transactions would be more than acceptable. Making it difficult to reduce fees is a big issue that needs to be resolved quickly.
CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected] None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. No reviews should be taken at face value, always conduct your research before making financial commitments.