Ethereum Transaction Fees Spike: Gwei Surpasses 690
CryptoNewsTerminal Staff04 Aug, 2024
Ethereum Transaction Fees Spike: Gwei Surpasses 690
The Ethereum (ETH) network's average transaction fee has surged to around 696 gwei (approximately $29.54) as of May 5. This surge is due to increased network congestion. Gwei is the smallest unit of ETH used to pay transaction fees or "gas." One gwei is equal to one-billionth of an ETH. The current gas fee spike is making it more expensive to conduct transactions on the Ethereum network. This increase in gas fees is primarily due to the network's popularity and the high demand for transactions. As more users join the network and more applications are built on top of it, the demand for block space increases, leading to higher gas fees. Developers are working on various solutions to address the issue of high gas fees, including increasing the network's capacity and implementing new fee models. However, these solutions will take time to implement. In the meantime, users can expect gas fees to remain high during periods of high network congestion. To reduce transaction costs, users can consider sending transactions during off-peak hours or using layer-2 scaling solutions. ```
