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Ethereum fees are rising again following a brief drop from all-time highs, but DeFi activity is keeping them from falling any lower.

Even as prices settle after a massive crash at the beginning of the month, Ethereum fees have remained elevated for a record-breaking stretch.

Ethereum transaction fees, paid to broadcast ETH transfers or interact with smart contracts on the Ethereum network, have remained above two dollars on average for a full month, starting August 10—longer than any previous run above that level, according to data from BitInfoCharts.

During that time, average transaction fees rose as high as $14.58 on September 2, before falling back to $2.67 on September 9. Now fees are rising again, a sign that activity on the network is picking up again, and DeFi-mania is far from over.

Fees for Ethereum (and also Bitcoin and other cryptocurrencies) are determined by network activity. Blockchain transactions are processed by miners with limited capacity. When transactions are being broadcast then miners can comfortably manage, transaction fees rise.

This gives an incentive for miners to add more processing capacity in the form of higher fee rewards, while also theoretically reducing the number of transactions being broadcast from users not willing to pay higher fee costs.

Ethereum transaction fees rose 70% to $4.55 on average between September 8 and September 10. The price of Ethereum also increased during that period, but only by about 4%, to $363.36.

Average transaction fees on Ethereum have only been sustained above two dollars twice before, according to BitInfoCharts. The first time, in early 2018, Ethereum fees remained above that threshold for just 10 days, between January 5 and January 15. The second occasion came during the summer of 2018, when Ethereum fees held above two dollars for seven days from July 1 to July 7.

Now, transaction volume is such that average daily fees have not had a chance to dip below two dollars since August 10. And with the recent reversal from fees that were falling before September 8, the streak seems set to continue.

The continued strong activity is powered by DeFi applications drawing in billions to be used for making loans and providing liquidity for token swaps on decentralized exchanges. Recent DeFi activity on Ethereum has been so strong, economic activity measured by the value of tokens being moved throughout the network surpassed that of Bitcoin for the first time in years.

Ethereum prices may be down from recent peaks, but fee activity on the network is suggesting the excitement and money flowing into DeFi projects may not be finished just yet

More to see? Click in here- https://decrypt.co/41605/ethereum-fees-rise-70-to-continue-record-breaking-streak?amp=1

People will be charged with less fee for their transactions if they understand how fees are charged on the network, from demand and supply rule.

ETH/ERC20 - Check and select good Gas price (https://bitcointalk.org/index.php?topic=5261480.msg54771880#msg54771880)
If you check fee with https://ethgasstation.info/calculatorTxV.php, the average fee is 98 Gwei, about 4 times than when I made my topic (19.8 Gwei). Fortunately, the average fee today is lower than last 1 or 2 weeks when it stood above 150 Gwei.

You can choose alternative coins for cheaper fees and wait till Ethereum network become less crowded or when Ethereum 2.0 comes to use the chain for you fund movement.
Comparative table on fees among some coins. Pick up one for your need. (https://bitcointalk.org/index.php?topic=5268851.msg54995175#msg54995175)

the increase in ethereum network fees is not as strong as last week. the possibility of experiencing another increase may occur. There has been confirmation beforehand that there is a problem with the ethereum network. Currently, transaction fees on the ethereum network have decreased considerably. but sometimes in the middle, we can even see that the fee decreases when not many people make transactions. is this really because of DeFi or because of improvements to the ethereum network itself. what is certain is that this must be addressed immediately by the ethereum development team.

Ethereum people used to criticize Bitcoin for having high fees and claiming that Ethereum will replace it because it's more scalable. But it's clear that having only a few times more capacity than Bitcoin is not enough to having spikes of transaction volumes, you would need much bigger blocks for that, and this would make any coin completely centralized. Even now it's very hard for users to run their Ethereum nodes. and in the near future it would be only possible for datacenters. This would make Ethereum closer to banks rather than Bitcoin.

this can be a reason why other project will move to other platform since they always have problem in using eth platform  and being congested many times.
Not that high for today fees but it can still increase someday if they don't find any solution to make it faster and affordable for every one.

The average fee (in Gwei) on ETH network has some spikes in August and September but the average fee has not yet increased too much. It increases sure but not increase and cause a disaster for ETH users.


Early today, the average fee is 98 Gwei (https://bitcointalk.org/index.php?topic=5275482.msg55185873#msg55185873), now it is 81 Gwei. (https://ethgasstation.info/calculatorTxV.php) Fee will be low again. Fast rise fast drop!

The chart is taken from https://blockchair.com/ethereum

The fees on ethereum network is totally depends on the transaction that happened in the network. More transaction and more fees as people are wanna sending their money on the swap service as soon as possible.

It looks like this article is only discussing about what factor that makes the fees of ethereum has increased a lot.

The fees is also getting affected by the trend that happened in the crypto too. We know that ethereum as a blockchain that being used by bunch of platforms for the tokenization.

I nominate Tron as another ground for DeFi projects in fact there are already DeFi projects on Tron like Oikos if the fees on Ethereum continues to be high new coming DeFi project will have to think of other options than creating one in Ethereum it's not attractive anymore and a big headache for traders.

Could it also be because of the users trying to get a cheaper fee?
They pick the slow method (Metamask) while there is an option of average and fast which is not that high from slow.

I mean, if all have picked the right fee instead of the cheapest then there would be lesser traffic now even with the DeFi hype being unstoppable.
Or, do other users need to sacrifice waiting for all of this to end before they can maximize using Ethereum again.

The problem arises with the current spike of ETH's prices plus the Defi hype. Of course, they don't need confirmations are everyone can see it in their blockchain and many are already complaining about the huge spike in fees, similar to what we have seen in Bitcoin last 2017. If Eth 2.0 will be release to answer the scaling problem then good, however, it's no assurance. It's easier we wait till everything settles down for a bit before making any transactions or shoulder the burden of high fees specially if you are in a hurry.

The attractiveness of DEFI projects may return to the news that Ethereum 2.0 was released in November. In the next 2 months, GAS prices may rise much more than before.
I have imagined people moving to Tronix in the rush of DEFI projects but maybe Ethereum has more followers and it is happening right now.
https://en.ethereumworldnews.com/ethereums-eth2-0-could-launch-as-early-as-november-2020/

Defi is the main reason of all these gas fees and they are taking it too long for ETH 2 , where they said they are going to use POS instead of POW , If it wants to go like that Dapps and tokens would rather use Polkadot blockchain, where its fast and fee is very small .

 :)This happens in networks when the currencies are too much hype or being bump,specially now that ethereum has been in good position for month now.

the Fees even in In Bitcoin transaction Grows High and not just that High even more.

So i think this is normal and you can choose gas to use.

This is temporary as all Both Bitcoin and Ethereum experienced this,EOS is great option but it depends on the Dev if they will push using their platform or not.

So still no choice for now But ethereum to use,Or convert to XRP or Litecoin for lower fees.

There are many reasons for an increase in the fee, which can be according to your explanation and it could be due to the following 2 reasons.
First is news that Binance enables Eternal contracts with YFI
https://www.cryptoknowmics.com/news/binance-launches-leveraged-perpetual-contracts-for-yfi-token/
Next up is the expected release of Etherem 2.0 in November of this year.
https://en.ethereumworldnews.com/ethereums-eth2-0-could-launch-as-early-as-november-2020/

A lot of the users here are mentioning about Ethereum 2.0. Last year, Vitalik was in favor of an early rollout of ETH 2.0, but he warned the users that if they haste it too much, then there may be security issues present in the algorithm. Already Ethereum has a resputation of having several security vulnerabilities and the last thing they want is to release ETH 2.0 before all the bugs are identified and removed. This is going to be a historic blunder.

The current rise in ETH fees are disadvantageous to the already defamed image of ethereum as a platform token. Smart contracts breaks when they don't have enough fees, people would spend more on transaction than what they are trying to achieve in dapp. It is destroying any surviving gambling dapps on the platform. The ETH 2.0 better be good enough to redeem the network, if not, there's no future for Ethereum.

Yes the gas fee is so high rather than our habitual things from the last few years. Because it has been a long time still the gas fee is high now and many people are waiting to see the low gas fee. But the average gas fee can't determine it because of it's high implement.

If value of Ethereum drop to $35, then Etehreum fees would suddenly be ten times lower and normal again. It is not that easy fro Vitalik to do that. His promises to deliver in last years were all false but price of Ethereum still had not dumped. So on my opinion Ethereum future will be very expensive.

I believe this is just a temporary thing because of the defi hype, it is not going to be sustainable for them neither, we are going to eventually see something major that will make defi hype die down as well. Remember just a year ago or so how IEO was the big deal, we have seen stuff with a billion dollars investment as well and it was all the talk in the bitcointalk forums as well, look at it now, nobody cares about it and nobody really chases after them aside from bounty hunters.

It means, at max in 6 months or so defi will be absolutely nothing and that means eth blockchain will be left alone and when that happens price of fee's will go down as well. If none of that happens, I am sure coders will figure something out ot make it a lot faster again.

i don't think it is the problem of the latest Kid in the block(the defi) project. i think it is as a result of the sudden utlization of the Uniswap platform. an unexpected surge in UNISWAP Usage lead to the insane fee raise. this has nothing to do with DEFI saga. what i find disgusting is that the fee after transactions in centralized and decentralized exchanges.

I was telling some people then that most of the project criticizing BTC for high transaction fee would which they are in Bitcoin shoes then. This transaction fee is about demand and supply but some people do not get it, the demand for space and Ethereum is high now and it is good to be in this position because it shows people are suing your network. I just hope there is a lasting solution to this because this is not sustainable in any form

Eth gas increase every time due to the trend and can lead to network congestion, This also happened way back when ICO where on it's prime, My normal transaction where affected because of the gas value and my token value are not going well with each other. I agree that this will soon go back to the normal eth fees as the trend goes down but for now, My eth transactions where limited, Most of us can wait but can't last if this goes on forever.

All my recent transactions didn't reach this address. I couldn't send more than one. Even crazy gas doesn't save you - as soon as a few days pass, the transaction is returned back to your wallet. Will this issue be resolved in the near future? Does anyone have any thoughts or suggestions about this situation?

For me I think that if this trend of the rising of ethereum fees continues many of the people whose using their blockchain will have gets disappoint knowing that for the previous years ethereum is one of the most use and trusted blockchain that many people are using and it can also lead them to losing several crypto enthusiasts whose using their platfom.

The increase in Ethereum fees will have a bad impact if it is not resolved immediately, because it makes some investors start to look
to other altcoins as an alternative. And this can reduce Ethereum holders slowly, this increase in Ethereum fees is due to huge traffic
on the Ethereum network. And huge traffic is due to increasing investors DeFi projects using the Ethereum blockchain network.
If leave it like this, some DeFi projects will use other platforms. Because more faster the transaction and also the cost more cheap.

Ethereum network must correct this kind of expensive fee, because if ever they'll going to go straight forward in maintaining this type of figure; users will decrease. We can't sustain for such a long time due to small profit made by higher transaction cost. They must find a good alternative to compete, not by price but also for adoption.

This increase of fee really hurt small crypto trader that is trading mostly ERC20 tokens because it cost more gas fee to transfer.


Yes I believe they must.  Cryptocurrency ETH incluced was once bragged to lessen the transaction fees of transactions in any amount than banks but from the looks of it, cryptocurrency is only beneficial for large base transaction but not on dusts one.

This cannot go on like this, I used to trade my Ethereum for fiat and it's my cryptocurrency of choice for two years already now, I'm using litecoin, Dogecoin, and Tron because of this issue, traders like me have to look for other options to trade, but it's a surprise, that it's not harming the price of Ethereum and it continues to perform better in the market, but for how long? 

It really does.
But having an option not to trade is one of it but what will happen if we will not trade? we might miss the runs just because of the fees.
Don't commit a transaction if fees are undesirable.

I am actually shocked at today's fee in ethereum. Cost 900k ethoshis. My first time to see such huge transaction fee. Though, it is reasonable since the ethereum's price is skyrocketing but I do hope it will go down into half like 400k ethoshis. I don't wanna blame DEFI for this rising fees, the hype still on going. But, I am really disappointed with the fees thus making me an urge to convert ethereum to other altcoins before transferring it into my wallet. Other investors may choose this option to save up some bucks.

It's very crazy the effect of defi on the price of ethereum fees. I can't accept to pay 15$ for move a little amount of eth from my wallet to my friend wallet. I hope that after this fomo price of fees will decrease

Unless the fee is 25% or more of the total amount, I don't see a reason why someone should refrain from trading. Remember that in the cryptocurrency market, the new tokens and coins can be extremely volatile. They can go up by 10x in a week, and at the same time they can lose 90% of their value in a few days. So for now, forget about the fees and go ahead with your trading plans.

The rise in ethereum transaction fee just goes to show that defi craze is still on. It was just a little dip due to sushiswap and some other exit defi projects but the enthusiasm is back in the market which is causing network congestion yet again.

For small traders or people who are lookinv for lower transaction fee they should try to make transaction during off peak hours. Mostly at late night or very early morning the transaction fee is significantly lower i have tried it and it works.

Im always trading on uniswap. This is quite the normal range 10-15$ per transaction, and if your unlucky the transactions failed your funds still deducted on your account. The problem lies due to high usage on uniswap so we cant really do something. What good is there are some other options like mooniswap and sushiswap to use maybe these platform can give us good fees and more eth when you sell tokens.

Its not practical anymore if youre gonna trade below 1 eth due to fees. So if youre planning to buy better to have a huge eth transactions.

This increase reminds me of the episodes with the crypto kitties. Ethereum gas fees also went up during this period and then reverted to it lower fee structure few months later. I believe the same thing will repeat this period. It is only a matter of time. DeFi is peaking.

The best way to deal with the issue of increasing gas fee is to use other cryptocurrencies for the transaction and swap after it hits the exchange. I learnt that its cheaper using dogecoin for transactions than ethereum. Depending on the exchange in question, you can look closely at the withdrawal fees to know the coins that would be more economical for your transfer.

The Ethereum fees had raised due to the demand of the Ethereum and it's source of many token transcation. The price of Eth also raised, so it's seems like it raised a lot. It had two different factors as said. So we can't blame the Ethereum. Ethereum is the efficient project with my experience.

Situation with eth fees is already better than it was before. It will be normalized by the end of the year, i guess

That fee increase because in the last few weeks ago, when the other defi project increase and decrease, I saw the fee reaching out $23-$30, so I decide not to continue to trade. The fee is too high for me, and I don't think that I can pay that to make a transaction just to buy and sell the tokens. But yes, the profit tempts me to continue, but I still not trying to trade. I am so afraid of losing that because the fee is too high for me.

Very good advice, so at what figure will the cost of gas be when you make transactions outside of peak hours or during the early hours of the morning? if it is cheap then I will also try it today.

This kind of record-breaking is not praiseworthy for the Ethereum since this will the investors not to convert their cryptocurrencies to ETH and not to send their ETH in their main wallet. Anyway, this is not the first time this kind of scenario has happened but this time they didn't make some changes to fix this kind of problem and the result is really annoying. You cannot sell a few tokens right now because the transaction fees does not make any sense at all.

In earlier occasions also we had such spikes in the gas prices for Ethereum. But back then, the magnitude was not this high, and also the rates went back to the previous level in a matter of few days. But this time, it looks as if the high fee levels are here to stay. And I am not sure whether DeFi alone is driving this spike. There are other factors as well.

record breaks were supposed to be good things but this one , its also a record breaking move done by eth but only on a negative way .

so it also affects trading/sending of coins ? not just eth transactions .  what if you wana sell your tokens because you see that its value increase by this time but the fees holds you back  . thats indeed annoying

Actually, the ETH transaction price has already increased before the huge traffic of Defi, Defi project just help it a little bit and I believe this was what Vitalik foresee when he put pressure on the Dev in charge of the 2.0

Honestly, it still a record breaking since the increased in transaction fee didnt affect the price of Ethereum in the market.

And so will be the transaction fee, am mo longer a fan of eth to say the truth, am always upset whenever I have to pay such high fee for transaction, I really do not care about their groundbreaking stuff, they should do something about high fees if they can or make the price to dump ;)

This is really an uphill scenario on the ethereum blockchain. How the transaction fees get this high is really not cool. I paid 50% of total fee I was sending and that was not good for me.

Now is better than few days ago. The ethereum gas fee was very high, almost 600 gwei if i remember.
This is because many projects using ethereum network at the moment, the ethereum network was congested.
We are forced to use high gas fee if someone using high gas fee with high volume of transactions.

Unfortunately that's true. It doesn't matter how great the upcoming upgrade if the fee is as ridiculous as it is today they better fix it first and deal with the other problem after that. The fee is simply ridiculous to the point where it's not worth it to send money with ETH anymore.
Maybe but if they do nothing resolving the issue it's gonna happen again and uniswap isn't gonna go anytime soon.

yeah i have check now and find that the gas Fee are far lower than couple days ago,maybe the congestion is already gone and
the transactions daily subsides.
Effect of DeFi investors maybe because they are the one who's bagging money now.
This happens to bitcoin also so this means ethereum platform is in demand by now lol.

Yes and I think if this will conitinue most small time trader wouldnt be allowed to use uniswap to trade some of their tokens. Its really frustrating cause the ones left are the one with huge fund and still have increase their funds cause they are the only one allowed to trade. Anyway a lots of improvement happened since then now the price of gas seema more okay now that usual. Even with price hike on eth network.

The moment when the Defi bubble burst, the Ethereum price will go down and also the gas price, but before that happens.. the transaction volume will push up the gas price and people will have to wait it out.

The same thing happened in 2017 with the Bitcoin price, when there was a ICO boom period. The ICO projects pushed up the Bitcoin transaction volumes and the Bitcoin price reached record high prices and the Miners fees went through the roof.

The funny thing is... Ethereum supporters laughed at Bitcoin back then and now they are struggling with the same scenario.  ::)

at that moment we didnt see yet defi project which is influenced to ethereum gas fee.only normal transaction in ethereum based project that didnt give significant impact to network. but now, much investors panic buying and sell in uniswap exchanges, they want their transcation immediatly confirmed in network so gass fee bleeding now.

Nothing compared to Cryptokitties still but yes, still very shitty for sending ETH. Worse if you want to do smart contracts I was complaining for $5 fees just to open and then another $5 to close some functions, but that was back in June! Now I don't even want to consider lowest fee.

On the other hand, I don't mind if ETH was $1000;)

It may be better to create a supplementary chain for the DeFi transations, similar to Lightning Network in Bitcoin Blockchain. It is very clear that the Ethereum Blockchain is unable to handle all the DeFi transactions. If we continue to put pressure on the Ethereum network, then both the DeFi and non-DeFi transactions may get delayed. I am saying this, because if the transactions get delayed then in the end the Ethereum adoption may get adversely impacted.

Everything is volatile in this space. It's not about the potential profit but if a trader sees no reason to trade with the fees and he's extremely feeling sorry for transferring.
He can profit or may not. Not all traders win.

Let's hope the eth team is already doing something behind this bottleneck. This is really frustrating for small traders who can't afford to pay high gas fees. Gas fees alone can be used to pay for a decent meal already. I hope this problem will not exist long. Or maybe when DeFi hype is over, we will see the normal gas fees again.

Man this gas fee of a thing is really getting out of hand, imagine I tried sending Bluzelle (blz) to exchange yesterday and I was charged 0.02eth, I mean have never paid this high.

According to this thread In future the price of Fees from ethereum network will Go High Huge and i believe your thread is connected to the topic here

https://bitcointalk.org/index.php?topic=5276182.msg55206080#msg55206080

in which it states


So better Get use to it as the future and the prices is continue rising .Aside from 2017 bubble of course.

With DeFi, bid events and recent hours claim UNI tokens and sell it on exchanges, people are in hurry and they join the fee race. Each person try to use as high fee as possible to get confirmations. Whenever the fee race is cooling down, the fee will be back to low. I don't think it will fall soon.

Always check fee estimations from https://ethgasstation.info/calculatorTxV.php

Above 400 Gwei, you can get fast confirmations.
About 280 Gwei, you will have to wait because it is average fee now.

ETH/ERC20 - Check and select good Gas price (https://bitcointalk.org/index.php?topic=5261480.0)