ETH transaction fees became a major point of concern for the Ethereum proponents as the gas fees twice hit all-time highs in one week. As the price retreats to normal many believe that Ethereum is enticing investors. Although ETH fee is back to normal, it still costs higher than Bitcoin Fee.
Recently ETH transaction fees marked an all-time high. More or less, it turned out to be a disaster for Ethereum traders, and firms that were paying dividends in ETH had to delay their payment schedule.
ETH Transaction Fee hovers above Bitcoin Fees
Indeed it is good news for the Ethereum community that transaction fee is back to normal. Users are complaining that ETH Fees cost more than Bitcoin.
Besides, one of the main reasons behind sparking ETH fees is the recent DeFi boom. That being said, ETH transactions started rising in June and July 2020.
For the last four days, the ETH fee has been consistently dropping after reaching an all-time high of $15.03. Currently, ETH fee stands below $3.43, it is still not acceptable for overly apprehensive users.
The lower gas fee is an indication of a bearish wave
Analysts predict that low gas fees will perhaps propel Ethereum towards the bearish zone.
“Gas fees have remained relatively low despite the dump that happened during the last hour. I assume the lack of network activity implies that most token holders, ETH and DeFi tokens alike are HODL-ing. I guess that we must be close to the bottom if we’re not already there,” one prominent analyst said.
And for ETH fees, it remains a subject to worry for Ethereum users even at this point. Few businesses are planning to look for alternative tokens to operate. Vitalik Buterin says the solution to high fees can be addressed after the 2.0 launch
Investors have started to look the other way around until the fees reduce than Bitcoin’s fee. Yet, it is lower than what we noticed in the past few, ETH Fee become a point of choking for the Ethereum traders and it was effecting the performance of smart contracts as well.