Ethereum (ETH) transaction fees are still rising, with no day in November seeing average transaction fees under USD 30. According to a new analysis from on-chain analytics firm Coin Metrics, transaction costs vary dramatically depending on the time of day transactions are performed, giving up chances for savings.
According to the paper, Ethereum transaction fees, also known as gas fees, are heavily dependent on the amount of traffic on the network at any given time — an issue that persists even after the EIP-1559 upgrade.
Since EIP-1559, Ethereum transaction costs have included a fixed-per-block network fee known as a base fee that must be paid in order for a transaction to be included in a block, according to Coin Metrics.
Because the base price varies with the demand for block space, transactions become much more expensive during network peak hours.
Fortunately, determining when the network is normally most crowded is possible, according to Coin Metrics, which claims that US business hours have the highest base costs within any 24-hour period.
“Interestingly, the morning period of midnight to 8am [US Eastern Time] tends to have cheaper base fees vs. US business hours (9am-5pm),” the report noted. It added that weekends, and in particular Sunday mornings Eastern Time, tend to be quiet periods, with a base fee that is on average 50% lower than the average at noon on Wednesdays.
The finding that US business hours have the highest fees is perhaps surprising given that Ethereum is a global network that is open 24 hours per day all days of the year.
However, the report cited peaks seen in sales of non-fungible tokens (NFTs) on the marketplace OpenSea, and peaks in the usage of the stablecoins tether (USDT) and USD coin (USDC) seen during those hours, as major contributors to traffic during these peak hours.
In conclusion, Coin Metrics said that one possible solution to minimize the amount of fees paid might be to schedule transactions to non-peak hours. And luckily for users, solutions, such as the Gelato Network of decentralized smart contract bots, already exist for scheduling transactions for other times of the day.
Bots like Gelato, which automate smart contract executions to occur at opportune times, have the ability to relieve congestion on the Ethereum network, according to the report’s conclusion.
According to BitInfoCharts, the average transaction fee paid on the Ethereum network on Tuesday was above USD 45, while the cost’s 7-day moving average was somewhat lower at USD 43.
The transaction fees 7-day moving average is still somewhat below its all-time high of USD 53.3 set on November 15, but it is still high enough to price out some economic activity from the network, as indicated in a previous Coin Metrics study.
Ethereum average transaction fees (7-day moving average):
At 13:29 UTC on Wednesday, ETH traded at USD 4,303, up a strong 2.6% over the past 24 hours, and up 1.2% over the past 7 days.
Source: Crypto News
Flexgigzz is the Asia leading marketplace for freelancers service and together with SOHO Learning Hub which is an online platform for short courses and both of them aims to be the number one provider in Asia. For growth industries such as E-Sport Authority which is dedicated to providing independent media coverage to all E-Sport News related from around the world and for the art world, there is Atelier Auction which is an investable art auctioneer and being in the art scene for decades.