The rising transaction costs involved with the Ethereum blockchain are becoming a cause of concern for the active users of the blockchain, who are now looking for alternate layer-1 blockchains so that they can escape the rising surge in transaction costs due to high gas fees.
Ethereum’s gas fees, the price paid for transactions on the network, skyrocketed from an average of $1.5 to $6.35 on November 17th, reaching a daily total of $6.9 million, according to CryptoQuant.
While the Ethereum blockchain has a great number of users and admirers at the same time, the rising gas fees may compel them to look for alternatives like the BNB chain, Solana, and Cardano. The salient feature of these blockchains, which is now looking to be a thing of the past for the Ethereum blockchain, is that they have low transaction costs, which makes them more economical.
And surely, the results of Ethereum charging high gas fees have been seen in terms of other blockchains seeing a surge in users. Most noticeable is the BNB seeing a surge in its native token, where the increase recorded has been astonishing from 14.66% to a current value of $242.13 as investors are looking for cost-effective solutions. The other quality all these blockchain boasts is faster transaction fees, which is one of the most important characteristics desired by blockchain users.
Solana, with its unique Proof of History consensus mechanism, experienced a remarkable 136% surge in its token SOL, now valued at $56.13. Similarly, Cardano’s ADA saw a significant increase of 46%, bringing its price to $0.36.
While these alternatives are gaining traction due to their lower fees and scalable infrastructures, investors need to consider factors such as security and adoption rates. Despite the potential for these alternatives to offer more efficient transactions, the impact on Ethereum’s dominance in the DeFi sector remains uncertain.
In contrast, Ethereum’s gas fees surged by 244% in the past three weeks, reaching $7.17 per transaction by November 12th. The fees for decentralized exchange (DEX) and non-fungible token (NFT) transactions are notably higher, ranging from $27.77 to $28.50 for DEX transactions and between $46.93 and $48.16 for NFT transactions. Additionally, bridging assets across different chains incurred an estimated cost of $8.93 to $9.17.
The average daily transactions on the Ethereum network during this period were approximately 1,061,288, reflecting the platform’s continued high usage despite the soaring gas fees.
As users navigate the evolving landscape of blockchain technology and digital finance, the focus on alternatives to Ethereum is clear. However, the community still has to consider factors that include not only lower fees but also aspects like security and adoption rates.
