Do you know why you are paying the high gas fee for Ethereum transactions?

[Whited35 15285]

It's not been so long, I could move most of the Tokens from my Ethereum wallet with $0.08 worth of ETH as a gas fee but now if I try to move the same amount of tokens, I have to pay at least $0.75 worth of ETH as a fee if I want to see my transaction to be processed within a few minutes. Yes, I am still free to customize fee by lowering Nonce or Gwei values but unfortunately, such transaction request with a lower gas fee is more likely to be rejected or miners keep unconfirmed for more than 3 days. Do you know why this is happening? I have explored to find the actual reason behind this problem.

Coin Metrics has founded that DeFi is the key reason behind this high gas fee in the Ethereum network due to an increase in demand.Coin Metrics said, "The increase in fees could make the network “prohibitively expensive” to use." If you locate the past three weeks, Ethereum transaction fees were up by 30.3% which is not looking normal. You know most of the DeFi protocols are based on Ethereum blockchain and currently, DeFi platforms are grabbing the attention of potential investors. Due to this sudden surge in demand for DeFi platforms, the network is looking extremely busy and miners will prefer to confirm transactions with a high gas fee. 

Recently, Vitalik Buterin has also warned,  high transaction fees may cause ethereum *less* secure.

 

Some experts say, large scale Ponzi schemes are also responsible to cause this problem. 

 

Reference:-

• https://coinmetrics.substack.com/p/coin-metrics-state-of-the-network-25c
• https://twitter.com/VitalikButerin/status/1285593115672358912
• https://decrypt.co/36263/defi-ethereum-transaction-fees

Edited July 23, 2020 by Whited35
Screenshot is added

[gourav789 2834]

I also suffer from this , gas fees is really high in these days ( I used metamask ) . sometime I see that their is 70$ transcation fees ( this happen with me one time ) . anyway we can easily edit gas fees as our requirements . 

[Whited35 15285]

1 hour ago, gourav789 said:

I also suffer from this , gas fees is really high in these days ( I used metamask ) . sometime I see that their is 70$ transcation fees ( this happen with me one time ) . anyway we can easily edit gas fees as our requirements . 

@gourav789We might edit the fee but the problem is, transactions with lower gas fees are either rejected or placed into pending queue. Last time, I edited fee to $0.10 worth of ETH but my transaction was confirmed after 3 days! 

[Syedbesharat 5423]

This quit good question you have point out which was in my mind because few days back i have get air drop coins from buzzin and i have to pay fee in ETH.Before that i used TRX but i could not get transaction confirmation and in last i go for ETH and my transaction was confirmed in 30 minute.But the fee was higher then the last time i pay.If they keep rising the fee many difficulties will come in ETH way and others will come out with new way .They have to increase their capacity to handle the traffic its not a solution of the problem.Where they put burden on clients.

[alexisfuentes 2130]

19 hours ago, Whited35 said:

@gourav789We might edit the fee but the problem is, transactions with lower gas fees are either rejected or placed into pending queue. Last time, I edited fee to $0.10 worth of ETH but my transaction was confirmed after 3 days! 

Three days !! you can put the Txs, that better supports your opinion.

If ! they are taking up to an hour, which is extremely long, when ETH is characterized by being practically instantaneous or only a few minutes.

 

This has been going on for a while and as your graph shows the situation far from improving is increasing.
This is a matter of "Scalability" all crypto face it at any time, the great detail is the time it takes to get the solution.

 

 

[BTC Future 3946]

Ethereum is dead for anything else besides DeFi and ponzi schemes. We can't even move coins from our wallets as we have to pay $5 fees. This is a disaster and is ongoing now for more than three months. 

Defi is nonsense as well, projects made to pump shitcoins and ask investors to hold them there for a year. We are talking about altcoins not Bitcoin.

 

I was also sad that Andreas Antonopoulos decided to promote these DeFi nonsense. He even recommended Bitcoin whales to sell their Bitcoin for shitty altcoins and risk losing their value for 5-6% yield. Total nonsense. He did talk about the risks but the message was clear. 

Anyway I won't even care to risk any amount of Bitcoin for DeFi.

[Moaz 7239]

Yes, this is true,that high gas fee for the ethereum network, and I agree with you that the reason for the increase in gas fee is the increased demand for conversion in the ethereum network, I think that when the network Ethereum 2.0 is launched at the beginning of next year it will be done solve this problem

[Whited35 15285]

23 hours ago, Syedbesharat said:

They have to increase their capacity to handle the traffic its not a solution of the problem.Where they put burden on clients.

Unfortunately, Ethereum blockchain is decentralized even Vitalik Buterin has nothing to do in this case. Miners are looking greediest to create the loots. Wait, Ethereum 2.0 is going to be released presumably in the next year. Until then, we have to see this chaos 😊, what can we do ? 

[Syedbesharat 5423]

3 hours ago, BTC Future said:

I've used Tron blockchain a lot and transactions were almost instant. I don't know perhaps there was some other problem in your case. Using Ethereum right now you can send a transaction in maximum one minute if you pay the recommended fees of 60-100 gwei. Depending on the token you might need up to $5.

My case is exceptional, let me explain it to you.The buzzin bot gives us 4 options to pay fee for collecting our reward.First one was TRX where i paid 10 Trx fee to with draw 10 REX from Yobit.But the bot of Buzzin does not confirm my transaction after one whole week.Ghe time of with drawl was ending and i made new transaction in ETH to get my reward.I suffer from this air drop 3 fold where my Trx are gone and also paid ETH extra fee .

The proof of my transaction is here .

Edited July 24, 2020 by Syedbesharat
Attachment of file for reffrence

[BTC Future 3946]

17 minutes ago, Syedbesharat said:

But the bot of Buzzin does not confirm my transaction after one whole week.

Well it is buzzin don't expect everything to go smooth. If you transaction is shown in tronscan as confirmed send him an email with the TX and if you got the tokens already explain to send you the TRX back. If Iremember correctly his email is hello@buzzin.com. The guy behind Buzzin does not cheat but sometimes he makes mistakes. Anyway I have stopped using buzzin for a while now. I had my twitter suspended as I was doing a months work in one day to get max points.

Edited July 24, 2020 by BTC Future

[Whited35 15285]

3 hours ago, Tingo said:

I have no idea about Ethereum and I don't know why it charges so much gas. If anyone knows let me know brother.Thanks everyone beside for me.   

Please kindly be as specific as possible. Do you have problem to know every essential information about Ethereum network and how transactions are processed within this network? If so, I kindly ask you to search more information about Ethereum by using search engines. If you still have no idea, let me know I can help you 😊

[Raqeebzy 6456]

I must say THIS study and conclusion is very right, now everyone works with Ethereum (mainly due to Ponzi schemes). Even the most clueless of people in my street are now talking about ether and having something do with it through DeFi and mostly Forsages and Ponzi (which they were decieved by calling it Smart Contracts 😂). I am just tired ether has become an household name and the high gas fee is what I know it is meant to happen (it will die down with time when they all get scammed again). But before then, I ain't moving my ETH nowhere, I can't afford the fee for now.

[Syedbesharat 5423]

21 hours ago, BTC Future said:

Well it is buzzin don't expect everything to go smooth. If you transaction is shown in tronscan as confirmed send him an email with the TX and if you got the tokens already explain to send you the TRX back. If Iremember correctly his email is hello@buzzin.com. The guy behind Buzzin does not cheat but sometimes he makes mistakes. Anyway I have stopped using buzzin for a while now. I had my twitter suspended as I was doing a months work in one day to get max points.

Let me put more derails the Air drop was Relicfum Pro and their is 22k members who made transaction on buzzin for reward.Their bot was working properly and many members made TRX transactions.Where in the end they introduce tool to find our transaction but the load was very heavy ,couldn't handle this much traffic.Where members are still shouting in the group at buzzin for this mismanagement.I was some how consider luck my self  to get my tokens.I have contacted their support on telegram but couldn't get answer after 4 days.They were not responding to the mails also.The situation was very bad.All members were cursing buzzin for that.Even i see few members yesterday trying to claim their tokens but the distribution is already over.

[estee369 489]

Thanks for the post. I made some transactions too recently and the gas fee was quite high. I didn't get my bounty payments for this gas fee too. Hope this will cool down very soon and we will be able to use the network with affordable fee. Though I made a transaction with only 0.22$ as I can remember but it took almost 16 hours. I made that transaction because I was not in a hurry.

Edited July 25, 2020 by estee369

[Whited35 15285]

16 hours ago, estee369 said:

Hope this will cool down very soon and we will be able to use the network with affordable fee. 

We all hope the same but there are already so many ponzi schemes based on Ethereum blockchain  from the scammers which is also causing this problem. More investors are attracted in DeFi products  which are also majorly based on Ethereum network and due to their extreme craze, Ethereum network is becoming prohibitively expensive to use. 

[Honny143 13612]

Everyone knows ETH block chain most used block chain in crypto market, majority of Dapps DeFi erc20 tokens every think listed in this blockchain, so miners take high fees to conform any transaction (demand & supply), I think ETH founder Vitalik Buterin also know this issue that's why he wants implement ETH 2.0 technology as soon as possible, but ETH 2.0 complicate technology so its taking to much time but hope in few months this technology launch, and every think normal and ETH gas fee also reduce.

[Swapzone 174]

Due to DeFi and several other factors, the eth network is becoming overcrowed. That's the reason of increase in gas fees.

[Izeal 4404]

Thank you so much for the useful information because I am tired of paying high gas fees which is more than a worth of good cryptocurrency with price upto $30. I am hoping for low gas fees so that I can trade ethereum in low fees other wise half of the cryptocurrency will be wasted by paying fees.

[khan22 3478]

When the coins price is high the gas fee is also high i pay just for the 2.50$ gas fee is just 1.60$. its too much but i know that in future when the ETH is touch the 10,000$ at that time the fee is so much high but may be so many transaction will make the fee so low becasue that time the buyers are so many.

[Teminali69 1081]

I have seen that kind of rise from time to time, it mostly caused mining difficulties and it is the same for all cryptocurrencies.

[nykas 2812]

This information is very useful for people who are inexperienced in crypto sphere. Unfortunately today Ethereum blockchains is little old for nowadays requests and because of some its disadvantages we force to pay such tremendous fees. Hope there will be updates that could fix this situation 

[Calvinpriva 17296]

On 7/23/2020 at 6:43 PM, Whited35 said:

We might edit the fee but the problem is, transactions with lower gas fees are either rejected or placed into pending queue. Last time, I edited fee to $0.10 worth of ETH but my transaction was confirmed after 3 days! 

In this case is better to pay high fee to receive your coins in the same day. 3 days for a transaction to not be confirmed is not safe at all! When i heard ETH has high fee i thought was $1/ $2 but am surprised to see some people paying a fee of $10 and even more! 

[Tolualive 116]

You are right with the information, defi makes the gas fee high due to massive transaction occurring within a short period of time,it can only be solved if ETH 2.0 is intiated by the developer to move to (POS proof of stake) from POW (proof of work).

[Maaz sultan 265]

On 7/24/2020 at 7:34 PM, Moaz said:

Yes, this is true,that high gas fee for the ethereum network, and I agree with you that the reason for the increase in gas fee is the increased demand for conversion in the ethereum network, I think that when the network Ethereum 2.0 is launched at the beginning of next year it will be done solve this problem

Yes their is another ethereum project is under development we hope to overcome the fee of transaction and will reduces the time required for transferring eth coin .

[Whited35 15285]

8 hours ago, Calvinpriva said:

In this case is better to pay high fee to receive your coins in the same day. 3 days for a transaction to not be confirmed is not safe at all! When i heard ETH has high fee i thought was $1/ $2 but am surprised to see some people paying a fee of $10 and even more! 

@Calvinpriva I have to pay $5 as gas fee to move EXY from my personal wallet to exchange but token price just worth $3 😂. I hate all the responsible factors behind this high gas fee. Honestly, they are enemies for small investors. Due to high fee, most of the exchange sites have increased withdraw fee. I was surprised, Yobit has increased USDT withdraw fee from 1 USDT to 6 USDT maybe due to this reason.