Reason for the high gas fees of ethereum?

Bookwormlux

Valued Contributor
I remember when I wanted to withdraw my first earnings from a site I worked on via ethereum, the site admin could not send my payment at the time I needed it because the ethereum gas fees were high at that time. I wanted to withdraw $5, but the fees was $3.7 which means I would be left with less than 50 percent of my earnings. This discouraged me from proceeding with the withdrawal because I could not afford to lose that high as fees since it took me up to 34 days before I got to the $5 I wanted withdrawing.
I later used Bitcoin cash to withdraw the morning.

That single experience has made me to lose interest in ethereum generally.
Please what could be the reason for the high gas fees?
 

Josemendez

Verified member
Generally , gas fees are function of network congestion on the blockchain . When there is many people trying to perform transaction at the same time , the gas fee is usually high.

To prove this , when performing transaction , if you set higher gas fee , the transaction is completed at a faster interval ,and when the gas fee is low , it takes time to be completed.

Normally , when a coin is rising , the gas fee is expected to rise as well ,because during this period of rising , there is usually more trade going on , thus causing congestion in the coin's network .

However , ethereum 2.0 has helped to ensure fast processing of transaction , thus lowering congestion in the network and the gas fee simultaneously .
 

Ekuvero

Active member
The gas fees is the only disadvantage in Ethereum imagine sending someone some Prochain since yesterday cause if the gas fee which was reduced from default the the pro chain hasn't reflected yet on the person wallet almost 32hours now
 

Kingsley

Valued Contributor
Etherum is having a high gas fee because of the right of it demands the demand is outweighing it supply and the coin keeps appreciate by the day. This and many other factors can lead to the rate of the charging fees in the etherum network. So for now we will have to make do with it.
 

sincerem

VIP Contributor
Ethereum gas fee is getting out of hand, that's why i don't buy directly. I buy BNB coin via binance.com app and convert it to any coin that i want use for investment purposes online. As for buying and sending it to another wallet address is out of my reach, i don't do that.
 

Putta Vince

Active member
Ethereum is one of the top coins , it's usually the second priority after Bitcoin when it comes to investing and use case of the coin. The gas fees is high because of very high demand for ethereum, which results in many transactions going on in the network which causes network congestion leading to high gas fees. Same happens with bitcoin , the fees is high for both the coins for similar reason.
 

btaliat

VIP Contributor
There are many reasons why gas fee of a coin can be high. At times, it may be function of the time, that is, it can be becuase there are many people that want to perform the same operation that particular time and at times, it may because of high demand for the coin
 

sincerem

VIP Contributor
I think at the moment the price of ETH gas fee and BTC is stable not like before you'll withdraw little amount of coin and seeing almost half of your coin's value being used as gas fee. The bearish run made it possible too, and Eth reducing the gas fee by doing system upgrade. I heard that they improved the ETH 2.0 blockchain to run faster and processing transactions with low gas fee.
 
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