NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

No End in Sight For High Ethereum Gas Fees

Samuel Wan
Samuel Wan
4 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Mid-August saw total Ethereum gas fees top a record $8.6 million in one day.

Following a brief respite, which coincided with the collapse of YAM Finance, total gas fees are starting to creep back up again. The latest data shows total gas fees reached $7.1 million yesterday.

ethereum gas fees

Daily total gas fees on the Ethereum network. (Source: coinmetrics.io)

The current state of affairs has some commentators debating the sustainability of the Ethereum network. Long wait times, as well as high gas fees, have soured the experience for many users.

During Mid-August, when total fees were at their peak, the average gas fee also reached an all-time high, at $6.62. At present, the average transaction fee is $5.99, dangerously close to mid-August levels.

average ethereum transaction fees

Source: bitinfocharts.com

Many blame the popularization of decentralized finance (DeFi) protocols for network congestion. But the DeFi craze looks set to continue, and with that, so are spiraling gas fees.

Taking this into account, the CEO of Shapeshift, Erik Voorhees, gave a prediction on the current gas saga.

He believes the network will grind to a halt under the weight of DeFi transactions. As a result, developers move to other Ethereum compatible chains to keep up with demand while ETH 2.0 remains in development.

“Prediction: Ethereum gas fees ruin Defi for normal users (until Ethereum 2.0 in 1-2 years). To meet demand, developers start rapidly porting Defi components over to Cosmos via Ethermint which just launched and is apparently compatible with Solidity already.”

Ethereum 2.0 Touted as The Solution to Soaring Gas Fees

The comments made by Voorhees were a tongue in cheek remark on a number of fronts.

However, the crippling cost of using the Ethereum network is still a significant challenge for stakeholders. This is a fact that hasn’t escaped core developers, who are working to address the problem.

Back in April 2019, core developers put forward the Ethereum Improvement Proposal 1559 to counter the issue of spiraling gas fees.

As we are witnessing now, the present auction mechanism is wholly inadequate as it puts miners in control of fees. What developers hope to achieve with EIP 1559 is the implementation of a variable base fee process.

“Because these base fee changes are constrained, the maximum difference in base fee from block to block is predictable. This then allows wallets to auto-set the gas fees for users in a highly reliable fashion.”

What’s more, the critical component of this system is that miners only get to keep a small premium of the base fee, with the base fee itself getting burned.

Under this system, there is no incentive for miners to manipulate fees to extract extortionate amounts from users.

As good as this sounds, like Voorhees alluded to, Ethereum 2.0 is years away from completion.

While the Phase 0 rollout of ETH 2.0 is scheduled for the end of the year, or early 2021, this upgrade refers to the implementation of proof-of-stake and building out a registry of validators.

It’s likely that Phase 1.5, when the mainnet becomes a shard, is when the issue of high gas fees gets addressed. According to Ethereum, Phase 1.5 will be ready in “2021”.

Ethereum daily chart

Ethereum daily chart with volume. (Source: tradingview.com)
Tweet123Share196ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum

This Ethereum Descending Broadening Wedge Pattern Looks Similar To 2019-2020, Here’s What Happened Last Time

Crypto analyst Crypto Bullet has alluded to a technical pattern for Ethereum, which mirrors its 2019/2020 price action. Based on...

Scott Matherson 1 week ago
Ethereum

Ethereum Is Repeating The Same Trend That Led To A 5,000% Breakout In 2017

After hitting above $3,800, the Ethereum price seems well on track for the next phase of the cycle. The ongoing...

Scott Matherson 1 week ago
Crypto volatiliteit daalt structureel door institutionele flows - wat nu?

Crypto volatiliteit daalt structureel door institutionele flows – wat nu?

De cryptomarkt is structureel aan het veranderen. Waar Bitcoin en Ethereum ooit berucht waren om hun wilde koersschommelingen, zien we...

Lars Diederiksen 1 week ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum Bulls Wake Up: $4,000 Target Back on the Radar After Reclaiming Key Level

Billionaire Mike Novogratz Says Ethereum Will Enter Price Discovery If It Takes Out This Level

Scott Matherson 5 days ago
Ethereum

Crypto Founder Reveals What Will Drive Ethereum Price To $10,000

Scott Matherson 6 days ago
Ethereum Whales Accumulate Over $4.1B In ETH In Two Weeks – Details

Ethereum Whales Accumulate Over $4.1B In ETH In Two Weeks – Details

Sebastian Villafuerte 6 days ago

Premium Sponsors

Press Releases

  • Earn $9,141 a day with mobile mining! ETHRANSACTION Smart...

    5 days ago
  • イーサリアムの価格が3,700ドル付近で横ばい、次の注目銘柄はこのico 仮想通貨プロジェクトか?大型チャンスの予感

    ...

    5 days ago
  • 次の100倍を狙えるミームコインを見逃すな?話題の取引ボット連動型トークンがそのチャンスかも

    ...

    5 days ago
  • FTXが9月も返金を継続:弱気相場に備える仮想通貨プレセール3選

    ...

    5 days ago
  • 暗号資産価格暴落によるパニック売りの中で注目される新しい仮想通貨の買い時とは

    ...

    5 days ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.