As it gets closer the Merge, Ethereum-related topics have been trending, including discussions of post-merge gas fees. The Ethereum Foundation stated that the network’s upcoming PoS transitional upgrade – The Merge – will not reduce gas fees. As they put it, “gas rates are a product of network demand in relation to network capacity. The merge depreciates the use of Proof-of-Work, transitioning to Proof-of-Stake for consensus, but does not significantly change any parameters that directly influence network capacity or performance. It may be true that expensive gas fees have never stopped senior Ethereum users from participating in the ecosystem, which has a lot to do with their seniority in the cryptocurrency space. In the current bear market, the price of ETH is now hovering around $1,600, but ETH used to be very cheap: it only cost $0.4209 to buy one ETH in 2015. The huge price gap gives senior users of Cryptocurrencies that joined the space eight years ago have a huge advantage as they hold a large amount of ETH. For them, the level of gas rates does not seem to be a big concern. However, for ordinary Ethereum users and crypto beginners, expensive gas fees have always been one of the barriers preventing them from entering the Ethereum ecosystem. From July 2016 to May 2017, transaction fees on Ethereum ranged from $0.01 to $0.10. However, on May 12, 2021, the average Gas fee reached $69 per transaction.
Crypto beginners are reluctant to pay the gas fees required to participate in Ethereum-powered DeFi or GameFi projects, not only because the fee is expensive, but also because they are new to the cryptocurrency space and therefore do not trust in the ecosystem. As a result, most brands have a separate marketing strategy to attract new users. For example, the well-known SMS used to be the most used messaging tool in the world. However, since 2019, WhatsApp has been slowly replacing SMS in the UK mainly because the former is free to use. Mobile service providers in the UK charge a fee of between £0.07 and £0.11 to use SMS. Although the fees don’t seem that high, as people use the tool more often and competitors start offering similar services at a cheaper price, these fees create a big barrier, shutting out more users. This also applies to new users and new developer teams in the cryptocurrency space. Compared to paying expensive gas fees on Ethereum, people prefer to explore nascent ecosystems that are cheaper to use, reflecting a normal decision to seek profit and avoid loss when people are presented with new options. . That said, for retail investors, there are still several ways to lower gas rates:
1. Be aware of network congestion and optimize transaction hours;
On Ethereum, transactions can peak on a certain date or at a certain time, which will increase the gas rate. If the transaction is not urgent, waiting for the network to cool down is a good way to save.
Source: gasnow.org
You can adopt tools to simulate an upcoming transaction without actually executing the transaction, allowing you to track and adjust the required gas rate before paying for it. For example, DeFi Saver is a great tool that helps you organize any type of Ethereum transaction and test and tune your transactions by running the simulation mode. Ethereum is not the only public chain available on the market. Considering Ethereum’s barrier to entry stemming from high gas fees, some users have been attracted to new public chains for their superior performance and cheaper fees. Let’s first take a look at the current Ethereum gas price. Right now, the normal gas fee on Ethereum is $0.46.
Next, we are going to look at other public chain ecosystems and also compare their gas rates. 1. BNB Chain is a public chain developed by Binance, one of the leading cryptocurrency exchanges. As an EVM-compliant chain, BNB Chain appeals to users who are put off using Ethereum due to expensive fees. Furthermore, the public chain is also looking to empower its ecosystem and recruit more new users through the use of BNB Token. As shown in the figure below, BNB Chain is superior to Ethereum in terms of gas rate. On BNB Chain, the normal BNB Chain gas rate is 5.1 Gwei (about $0.03214).
2. With the goal of building an efficient DeFi system, CoinEx Smart Chain (CSC) is an EVM-compliant public chain built by CoinEx. As a global cryptocurrency exchange committed to “making cryptocurrency trading easier”, CoinEx offers user-friendly products and services and strives to introduce more new users to the blockchain industry by removing barriers from the cryptocurrency space. CSC also uses PoS and is characterized by increased security and stability, high throughput and low gas fees. In CSC, the normal price of gas is only $0.01 (see figure below).
Lower gas rates help retail users, as well as new developer teams, save significant expenses. The CSC is organizing the second global hackathon, which has a huge prize pool. Join the hackathon if you want to create a new project. 3. Huobi Ecological Chain (Heco) is a decentralized public chain that offers efficient transactions and smart contract support. Aiming to help developers at all stages of growth, Heco strives to build a strong ecosystem with a closed loop from technology development to application promotion and transactions. Under normal circumstances, Heco’s gas fee is 2.6 Gwei (about $0.016385).
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