Understanding Ethereum’s High Gas Fees
The debate surrounding Ethereum’s high gas fees has been a major pain point for users of the network. However, the recent spike in gas fees can be attributed to the hysteria surrounding the PEPE memecoin, which has once again put tremendous pressure on the Ethereum network.
Traders are now finding themselves paying thousands of dollars for a single transaction as Ethereum’s gas fees have surged above a one-year high.
The Impact of High Gas Fees
In a recent development, a trader had to pay 64 ETH for a single transaction on May 8th. According to the blockchain tracker ‘Whale Alert,’ the user paid a staggering $119,157 just to send 84 WETH.
It’s important to note that transaction fees on Ethereum have reached even higher levels in the past, ranging between $50 to $70 in 2021. However, since the market crash in May 2022, the fees have been relatively low.
The recent excitement surrounding the PEPE memecoin has led to a revival in gas fees. As a result, the average transaction fee surged to $27.62 on May 5th, a level that was last seen almost a year ago. Since the memecoin’s launch on April 18th, average gas fees have increased by a staggering 115%.
Impact on Other Networks
It’s not just the Ethereum mainnet that has been affected by high gas fees. Layer 2 solutions, which are designed to reduce transaction costs, have also been hit hard as network demand skyrocketed.
Notably, zero-knowledge proof-based (ZK) rollups have witnessed significant fee surges for swapping tokens. Solutions such as Polygon zkEVM, Starknet, and zkSync Era mainnet have experienced fees ranging between $2 and $11.
The ongoing debate and challenges surrounding Ethereum’s high gas fees continue to be a major concern for users. The recent spike in gas fees, fueled by the PEPE memecoin hysteria, has further intensified the issue. While alternative solutions like Layer 2 networks aim to reduce transaction costs, they have also faced increased demand and associated fees. Monitoring and addressing these gas fee challenges remain crucial for the Ethereum ecosystem to ensure a more efficient and cost-effective user experience.