Most Ethereum users will agree the network is far from efficient. Every time a project gains momentum, the transaction fees will spike to double digits relatively easily. Although users can try a few other solutions first, solving the high transaction fees on Ethereum will require a significant network upgrade.
Ethereum Transaction Fees Remain A Problem
For a network that is developer-oriented, Ethereum is far from efficient. Forcing users to spend over 80 gwei on transactions is not an ideal approach. Moreover, these issues have persisted for a while now and do not seem closer to a resolution. Although the introduction of EIP-1559 has taken place, it does not lower the gas fees. It does ensure a part of the gas is burned to reduce the ETH in circulation, yet it doesn’t make Ethereum deflationary either.
The big change may occur when ETH 2.0 goes live. Unfortunately, no one knows when that may happen exactly. The network upgrade is still in development and has no official launch date. For the users who are stuck on high transaction fees, there needs to be a better solution. Thankfully, there are some things every user can explore to hopefully lower the gas price for their transaction(s).
More Efficient Transaction Types
It is not uncommon for users to have multiple Ethereum addresses. Anyone can generate an unlimited amount of addresses to interact with various services and solutions. Having funds in multiple addresses can be problematic when high transaction fees occur. Rather than interacting with a service or platforms from two addresses separately, it may be best to send funds from address A to B or vice versa first. Then send the full transaction to save on gas fees. Regular transactions are often cheaper than smart contract interactions.
That same thought applies to claiming rewards from any service or platform. If you earn tokens for providing liquidity, staking, or anything else, take the value of those earnings into account. If that value is lower or equal to the current gas fees, do not withdraw them and wait until the network stabilizes. High transaction fees are not the time to begin performing needless transactions that can wait.
Try To Time Transfers To Lower Transaction Fees
Although this option will require some work, the easiest way to avoid Ethereum’s transaction fees is by timing your transfer. It has become increasingly easy to figure out the current gwei requirements and determine whether a transfer is appropriate. In most cases, it won’t be, and waiting for a better transaction price is a straightforward option. That can prove problematic for interacting with DEXes, DeFi solutions, and other tools, but it remains a viable option either way.
However, estimating the amount of gas is an alternative option for those who prefer not to wait. While wallet solutions will suggest an estimate, they don’t always take current network conditions into account. Using Etherscan’s Gas tracker will help users overspend in most cases. Some smart contracts may have very different requirements, although it is usually possible to reduce the transaction fees somewhat.
Layer 2 Whenever Possible
One of the improvements to Ethereum is the use of Layer 2 solutions. Although these protocols still hook into the Ethereum blockchain, they often achieve better and cheaper transaction fees than the leading network. Whether it is a sidechain or a Rollup, both options can reduce gas costs significantly. Not all services and products integrate Layer 2 solutions by default, though, which can prove a bit of a hindrance.
As more projects migrate off Ethereum to chains like Polygon or Loom, things will eventually begin to improve. Many people wait for Uniswap to support more Layer 2 solutions to help reduce transaction costs by a significant margin. If and when that will happen exactly remains unclear, although it is expected “soon”. An exciting upgrade to look forward to for many people.
Looking to advertise? We will gladly help spread the word about your project, company, or service. 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]