Ethereum is still on the rise, and the adoption of DeFi has made it one of the biggest blockchains in space. However, along with the growth momentum, users’ Ethereum transaction costs have also increased, making it difficult for some on-chain operations. This leads to the creation of Layer-2 chains, which have cheaper transaction fees than Layer-1. Therefore, can Ether’s recent fee reduction help the project maintain its lead?
Currently, while Ethereum use cases are consistently outperforming Polygon, when it comes to operating costs, Polygon is always ahead.
Recently, Ethereum’s transaction fees fell to their lowest level in more than two years, with the average cost of a transaction dropping to $0.88, a level last seen in July 2020.
On Ethereum’s gas fee tracker, at the moment, the base fee for an on-chain transaction seems to be averaging between 12 and 16 Gwei. Meanwhile, NFT and DEX transaction fees are around $1.06 to $4.11.
At the same time, Polygon’s basic transaction fees ranged from 50 Gwei to 56 Gwei. It even peaked at 100 Gwei at some point of the day.
Even so, transaction fees on Polygon are much cheaper than on Ethereum. The reason behind this is that the calculation of gas fees on Ether is calculated in ETH while Polygon is done in MATIC.
For example, the lowest transaction cost on Ethereum of 12 Gwei would be equivalent to $1.06; meanwhile, 56 Gwei on Polygon will only cost $0.0003037576.
Along with that, the transaction processing time on the network also plays an important role in attracting investors. Polygon’s transaction completion time is about 2.3 seconds. On Ether, only 6 transactions can be completed in a minute.
This is why regardless of the underlying lower transaction costs, Ethereum will not be able to beat Polygon in terms of transaction fees, even though the network has increased fees recently.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Gas Fees On Ethereum Are Cheaper Than Polygon?
Ethereum is still on the rise, and the adoption of DeFi has made it one of the biggest blockchains in space. However, along with the growth momentum, users’ Ethereum transaction costs have also increased, making it difficult for some on-chain operations. This leads to the creation of Layer-2 chains, which have cheaper transaction fees than Layer-1. Therefore, can Ether’s recent fee reduction help the project maintain its lead?
Currently, while Ethereum use cases are consistently outperforming Polygon, when it comes to operating costs, Polygon is always ahead.
Recently, Ethereum’s transaction fees fell to their lowest level in more than two years, with the average cost of a transaction dropping to $0.88, a level last seen in July 2020.
On Ethereum’s gas fee tracker, at the moment, the base fee for an on-chain transaction seems to be averaging between 12 and 16 Gwei. Meanwhile, NFT and DEX transaction fees are around $1.06 to $4.11.
At the same time, Polygon’s basic transaction fees ranged from 50 Gwei to 56 Gwei. It even peaked at 100 Gwei at some point of the day.
Even so, transaction fees on Polygon are much cheaper than on Ethereum. The reason behind this is that the calculation of gas fees on Ether is calculated in ETH while Polygon is done in MATIC.
For example, the lowest transaction cost on Ethereum of 12 Gwei would be equivalent to $1.06; meanwhile, 56 Gwei on Polygon will only cost $0.0003037576.
Along with that, the transaction processing time on the network also plays an important role in attracting investors. Polygon’s transaction completion time is about 2.3 seconds. On Ether, only 6 transactions can be completed in a minute.
This is why regardless of the underlying lower transaction costs, Ethereum will not be able to beat Polygon in terms of transaction fees, even though the network has increased fees recently.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
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