Rising Gas Fees of the Ethereum Network in 2023: A Balancing Act of Growth and Cost
With a price of $1701 on February 2, 2023, Ethereum is sure to reach its all-time high this year and is sure to work its way to a new high as it scales to the latest highs. If we say, despite the increase in the token price of Ethereum, the cost of sending the cryptocurrency on chain has also increased and on January 18, when we talk about the data of bitinfocharts.com, we get that 0.0029 ETH or $4.52 The transfer fee for the Preeti transaction is shown and after only 15 days the fee had increased to 0.0031 ETH or $5.14 per transaction. The average transaction fee was fixed at $1.96 per transaction on January 18, 2023, and increased by 20% to $2.36 per transaction on February 3, 2023. The average fee to transfer Ether is now 0.0014 ETH.
The cost of transacting on Opensea is currently $3.89 when we look at it, while a Decentralized Exchange (DEX) swap costs around $10.02 per transaction. From what we see on February 3rd on the Ethereum network, the cost of transacting with an ERC20 token like USDT or USDC is around $2.94 per transfer.
The cost of sending a transaction using the Ethereum scaling solution Optimum is approximately $0.288 per transaction, while L2 scaling network Arbitrum is approximately $0.182 per transfer as of February 3, according to Dune Analytics data. If we look at L2 transactions using Arbitrum and Optimism since 15 Jan 2023 it has seen a combined decline and 2 days ago on Feb 1 Ethereum recorded 1.06 million transactions while using Arbitrum and Optimism The combined number of transactions made had gone up to 902254. According to the data, we can know that the cost of transferring 1.06 million transactions on Ethereum at an average rate of $2.36 per transaction would be exactly $2.49 million. However, if these same transactions were moved to Optimum at a fee rate of $0.288 per transaction, the cost of transaction fees would be $307,680, which is 87.67% less. If transactions were moved to Arbitrum at a fee rate of $0.182 per transaction , the cost would be $193,720, a decrease of 92.19% compared to Ethereum. While Ethereum recorded 1.06 million transactions with very high fees, Optimism had 212,743 transfers and Arbitrum had 689,511 transactions.
