Why Ethereum GAS fee so high?

[TastyChillySauce00]

Devs and traders are spending 200+ dollars for a transfer, it’s crazy fee going on, you wonder why devs and traders are fleeing ethereum? Really? Really?

if trader that used high price to get confirmed ASAP then maybe that makes sense but devs as far as I know always using testnet when developing their eth related software and if they used the main network and their code happens to have bug it could drain their eth easily.

I think is due to scalability problems within ethereum platform. Its not able to handle many transactions at the moment(TPS) resulting in congestion of network. So to make the transaction up in the queue and faster, fees is increasing exponentially.
Hope soon the price will be reduced.

That's exactly the problem just see this chart https://blockchair.com/ethereum/charts/transactions-per-second and witness how the 15 tps is just simply doesn't cut it anymore and that's why I heard in july the overall TPS will be increased to 100,000 TPS for ETH but don't really know whether that's truly gonna happen.

[SaiyanSS3]

>>https://bitcointalk.org/index.php?topic=5328629.msg56771151#msg56771151
>but devs as far as I know always using testnet when developing their eth related software
you don’t get it, every DeFi project require normal speed to function, all the staking required speed, even the devs itself are resorting to pay high fee to run their DeFi, flee as fast as you could.

[flyer88]

The cost of ethereum gas is high because the price of bitcoin continues to rise so that high demand causes gas to go up, if this continues there is no sign of a decrease in gas costs, the main factor for ethereum gas is high the market has recovered market demand is also getting more competition so transactions take place too automatic fees or ethereum gas are delayed, which is the main benchmark

[blckhawk]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

It is just simply because there is a lot of transactions being made right now or the demand is high and the network is congested so folks are trying to increase their fees to get prioritize to have a faster transaction.
This problem is the reason why people are having a second thought of choosing this network but I do hope for the release of ETH 2.0 to make changes and fixing the fees problems, that would certainly improve the number of users in the network.

[Ewox]

Ethereum gas fees are high because the demand is high, just like Bitcoin it's transaction fees are high as well. If the demand decreases then the gas declines its fees so it's either you are going to wait for the demand to lessen or you just have to deal with it's current gas fee that's fairly high.

[harapan]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

There's one reason why Ethereum gas fee will be high and that's because of the Ethereum Network is congested with so many transactions, and the Ethereum doesn't have what it takes to make all those transactions work at a time, so instead the highest fee per transaction gets to be confirmed first, the only this current spike in gas fees can reduce is for Ethereum devs to release eth 2.0, else we will still need to pay those high gas fees.

[Dexion]

ETH gas costs become expensive along with the current eth value of up to 2000 $, coupled with very high transaction requests per second so that ETH increases its cost price to increase the speed of each transaction, but currently eth party is planning to innovate eth2.0 which is in claims can reduce transaction costs without reducing time efficiency in each transaction, and we are still waiting for certainty when it will be launched.

[bakasabo]

ETH gas costs become expensive along with the current eth value of up to 2000 $

This is true and false at once. If you recalculate transaction price to USD, then yes, transactions are extremely expensive. But if you just count gas burned amount, then the transactions cost same as they cost year ago. I'm specially watching transaction cost whole day today, and this morning you might make a successful transaction with 65 gwei, which is the almost regular transaction price of year 2020. However this evening transactions fees are 180+ gwei and this is our bitter reality.

[Yayis]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

You can decrease the gas in your transaction, however it will make your transaction slower. The best way if you are on an exchange and want to send funds from an exchange to another is to use a fast crypto with low fees ( tron, bch, cardano ) and then send your funds and exchange them again.
Depending on the amount ( it may not always be a good idea ).

[Jackl87]

In the last 3 days the Gas fees on the ETH network were quite low compared to the weeks before. On sunday and monday the gas price was down to around 65-75 gwei during a few hours. That's like 3$ for an ETH-transfer and 6 dollars for an ERC-20 token Transfer. I mean thats still expensive but at least kinda ok for a normal user like me. Of course those numbers have to come down to below 1$ per transaction in my opinion in order to make ETH an everyday currency for everyone. Uniswap trades and Liquidity providing on uniswap are still expensive with 20$+ even with the low Gwei during the last 2 days.

[adekogbe]

This is one of the biggest downsides i have ever had with using the ethereum blockchain, and that is because sometimes i have a lot of ERC20 tokens that arent worth much individually but are substantial as a collective, but on the Ethereum network i am always unable to sell due to the high transaction fees.
i really hope ETH 2.0 is released soon and it does something by providing a solution to this problem.

[Ridwan Fauzi]

All transaction fee in crypto currency will be depend on the user itself. If there is many people who use the altcoin let say ETH then we will see a huge increase for its fee per transaction. As you remember, when ETH price still low it means just a few people who use ETH as their investment place or it means the ETH network is not busy then its fee per transaction is very low and many people just choose ETH than bitcoin to transfer their crypto currency. But now, when ETH price is already high many ETH user complained that. The solution is their developer trying to update with new system, there is some update that ETH developer do before now and give a little change, but it is just for a while. And if I'm not mistaken ETH developer will make new update to resolve this problem.

[JeffBrad12]

you don’t get it, every DeFi project require normal speed to function, all the staking required speed, even the devs itself are resorting to pay high fee to run their DeFi, flee as fast as you could.

Agreed, TPS is everything when it comes to blockchain-based applications. We know that if the blockchain-based applications will be using blockchain as the main thing.
Any transaction that's happening in the defi or blockchain-based application

That's why so many new platforms wanna try to fix this problem by providing big TPS. If BSC has slow TPS like ethereum and it will not so popular as now.
So many people didn't even get what's the main purpose of a platform with very good scalability.

[lionheart78]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

It is because confirmation is like a competition on a transaction fee.  The more competition there is (transactions) the higher the fee since they tend to compete on which one will be picked up and included on the block first and to be the first one means bidding (paying) higher on tx fee than other transactions. This is one of the flaws of the current system.  If you wanted to have a reduced tx fee, then you need to wait for the network to be uncongested.

[sulis sudibyo]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

because of the density of transactions on the ethereum network and it causes the price of gwei to increase. As a result, ethereum's gas fees went up considerably. Another reason for this problem is also because ethereum prices are high, this causes gas prices to be expensive. the solution I see is network 2.0, but it still can't be done right now.

regardless of ethereum issues, it is fine for other platforms. one of them is BSC, which is an alternative at this time.

[pinggoki]

Why ethereum GAS fee is so high?
Is there any possibility of fee reduction?
What are the factors are responsible for increasing or decreasing the fee?

The ethereum gas fee is high because the sudden pump up of altcoins including the ethereum pump also in which it also affects the gas fees that the people do every transaction. The possible chance to decrease again the gas fee or the transaction fee on ethereum is when the ethereum itself will dump again and because of that the gas fee will be back to the normal again. That's the possible thing that might happen in order to decrease the gas fee or back it again to the normal prices.

[muratsink]

Without upgrade to 2.0 impossible we can see gas ethereum back to lower price and still not possibility how to know and when ethereum upgrade 2.0, how ever many trader and coin now move and change from erc20 platform become with BSC network where have lower gas fees transaction and keep lower than ethereum erc20 platform.

[Hobo66]

The new EPI's will address this issues... scalability is so important to bring down gas price and thats what eth2.0 is doing.... blockchain is ment to evolve... and thats what its been doing since genesis blockchain.... so we are on the right path .. but just be patient and careful of where and when u put ur money .

[Dexion]

Without upgrade to 2.0 impossible we can see gas ethereum back to lower price and still not possibility how to know and when ethereum upgrade 2.0, how ever many trader and coin now move and change from erc20 platform become with BSC network where have lower gas fees transaction and keep lower than ethereum erc20 platform.

I don't know what the ETH developers think, it looks like it's relaxed to face this problem, as if the news of eth2.0 is like a diversion and a promise that never happens, many are starting to switch to other platforms and create opportunities for other coins to narrow down gap in the competition for coins in crypto, even though the already high eth value if this cost problem is not resolved will be catastrophic

[Altcoinsintel]

The problem comes with the demands of decentralization. There is no efficient way of scaling a blockchain without losing much of the decentralized part. Technologically it would require an increase in block size, which in turn will create problems with running your node and validating your transactions. Moore's law is behind in the speeds of CPU's and many think it will find an end in capacity terms too. Ethereum as Bitcoin has to make fundamental changes to keep scaling without fees growing. The Ethereum network is used more than ever before with DeFi and NFTs, and this is the most it can give right now. Of course, Ethereum is not Bitcoin and requires changes, as it is a service. Bitcoin is an investment and it is an asset but doesn't have thousands of projects running and clogging its network. It performs as an investment asset and its fine like that. Ethereum needs to scale and this is why Ethereum 2.0 upgrade is in progress.