With just over two weeks until The Merge, Ethereum network fees have dropped significantly, with the average Ethereum transfer fee dropping to 0.00092 ether or $1.37 per transaction on August 28. Median fees have dropped to 0.00036 ether or $0.544 per transfer, and .io’s gas tracker notes that a priority fee will cost 11 gwei or $0.34 to get a transaction confirmed in about 30 seconds.
Ethereum on-chain transfer cost remains low, L2 transfer and exchange fees are still cheaper
On August 16, the Ethereum Foundation updated a previously published blog post to clarify that The Merge will not reduce gas fees or improve throughput. With The Merge just over two weeks away, Ethereum gas fees have been much cheaper than they were before mid-June.
At that time, in mid-June, Ethereum’s average gas fees began to drop from $3.86 per transaction to 0.00086 ether or $1.46 per transfer during the first August week. Gas fees are even lower today, as the average fee is currently 0.00092 ether or $1.37 per transaction, according to data from bitinfocharts.com.
Bitinfocharts.com metrics further show that the median size Ethereum fee on Sunday is 0.00036 ether or $0.544 per transaction. Data from Etherscan.io shows gas prices are lower, according to the website’s dedicated gas tracker.
Currently, as of 4:30 p.m. (EST) on August 28, 2022, the highest “priority” gas fee according to etherscan.io is 11 gwei or $0.34 per transfer. An Opensea settlement will cost $1.17 per transaction, a Uniswap exchange will cost a user $3.03 using the priority transfer setting, and to send an ERC20 token as tether (USDT), etherscan.io estimates the cost is of approximately $0.89 per transaction.
Although ETH fees are lower, they are twice as high as the average Bitcoin (BTC) transfer fee, which is 0.000039 BTC or $0.785 per transaction on Sundays. The median fees on the Bitcoin blockchain are 0.000013 BTC or $0.258 per transaction, which is also lower than the median transfer fees for ETH.
In terms of 24-hour rewards, ETH miners earned $41,107,170 in block rewards, while BTC miners earned $35,976,600 in block rewards plus transaction fees. As Ethereum onchain data charges have come down a lot, it is still much cheaper to transact through Ethereum-enabled layer two (L2) payment rails.
Metis Network is the cheapest transfer fee today, as l2fees.info says the estimated cost to transfer ether through Metis is $0.01 per transfer, and to exchange coins through Metis it is of approximately $0.06 per transaction. A Loopring ether transaction will cost around $0.03 per transfer; to trade via Loopring, the estimated cost of L2 is $0.37 per trade.
L2 fees through Zksync, Arbitrum, Boba Network, Optimism, Aztec Network, and Polygon Hermez are all lower than on-chain transfer fees. Swap fees through these networks are also cheaper than on-chain swap fees through traditional trading on a decentralized exchange (dex) like Uniswap.
What are your thoughts on Ethereum network fees staying low ahead of The Merge? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons