Ethereum and its network have been one of the most used digital asset and network over the last few years. But while the network has seduced most people into the crypto sector, it has also become a source of worry for those in the network.
Ranging from congestion to high network fees, the members are bitterly complaining about the latter more than the former. A new report has claimed that the recent amount charged for a transaction on Ethereum is now close to two times the exact figure that the network charges for transactions in late 2017 and early 2018.
Ethereum set to introduce the EIP-1559 upgrade
To tackle this menace, Ethereum already touted an upgrade that was thumbed up by the public. According to the update, the new Ethereum upgrade, EIP-1559, would ensure that the amount charged for transactions is small compared to those presently charged. But this recent report has claimed that unlike the claim of the developers of the coin, the new upgrade might not be the key to solve the transaction fee issues.
Aside from the native coin located on the blockchain, the blockchain now houses two of the hottest prospect in the crypto market, the decentralized finance sector and the recently booming NFT sector. With a massive amount of stablecoin also located on the network, analysts have pointed out that scalability has been the most difficult issue that the network has had to contend with.
With scalability an issue, it, in turn, generates long queues waiting to get their transactions confirmed, which in turn birth the high fees. Presently, the average highest cost of making a transaction on the network is now close to $30. The recent report by CoinMetrics talked about the differences and similarities between the fees for transactions during the ICO craze and now.
Transaction fees now more than the one paid in 2017
The report showed that the highest amount paid as transaction fees during the ICO period was said to be around $5. However, things have now changed, and the amount needed to complete a transaction is now five times more than that. While the report points out that the massive surge in the price of Ethereum may have added to the surge, it points that the massively increasing congestion has overly impacted the price on the network.
At this time, Ethereum has nothing less than 150,000 transactions pending on its mempool, and the figure is said to have touched 180,000 on some occasions. CoinMetrics pointed out that Ethereum should look into solutions on the scaling of its layer 2 as that could be the only way they have a shot at reducing the gas fees. Some protocols have adopted this solution to combat issues like this, and it has worked for them.