High transaction fees: Ethereum's fatal weakness

[MrSpasybo 1049]

I've never seen such a high transaction fee!

The minimum gas per transaction is 222 gwei, many community members are complaining that they don't have enough ETH to pay for the transfer of tokens from the wallet to the exchange. At the same time, there are many people responding that their transaction has failed after hours of waiting.

I was also quite disappointed about this as the more I waited for the fees to go low, the higher it went, the consequence was that I didn't send any ERC-20 tokens to Binance for trading, I lost several thousand USD in this market correction.
I am a loyal fan of Ethereum, but right now I'm thinking of Cardano, BSC, TRON or Tomochain. I understand the BNB price increase is perfectly reasonable. We are no longer patient enough to wait for the development of ETH2.0.

Do you think Ethereum will lose a lot of users during this period? Will this make Ethereum lose its top altcoin position? Will Ethereum fall before the massive rise of new blockchains? And have you regretted focusing only on ERC-20 tokens?

[Ridam 7455]

For investment prespective ,Eth is super bullish. Considering the Grayscale investment, Celebrity like Ksi sharing thoughts about Eth and institutional investors who ain't look the the gas fee typically.

But from utility prespective the, Eth is lacking in performance: its is because of network congestion. And I am certain that other chain would also suffer at this high network congestion. Just look at the BSC chain, few weeks back the transaction would merely cost 10 cent but now we are seeing the fee to be 60-70cent normal. And for some Dapps like Autofarm ,for smartcell call transaction, Yesterday I paid 6$.

And the price of BNB is only 250$ around, if it reaches 17-1800$ like eth,I think same will go on for it too.

 

[Whited35 15285]

On 2/23/2021 at 1:35 AM, MrSpasybo said:

Do you think Ethereum will lose a lot of users during this period? Will this make Ethereum lose its top altcoin position? Will Ethereum fall before the massive rise of new blockchains? And have you regretted focusing only on ERC-20 tokens?

Frankly speaking, PoW-based blockchains are getting expensive to move the coins or tokens. If we locate the current case of Ethereum, who can afford to pay $25 worth of ETH to move $5 worth of Token. PoW-based Ethereum blockchain has the notorious demerits and definitely, small asset traders are more likely to loose their faiths into ETH. Myself, I have switched BNB to perform the active trading. 

[selfmade 7]

This is not a new thing to cryptocurrencies, that is why I always avoid bitcoin and ether, this coins tends to rise fees and transactions becomes too slow during bull runs.

[Cleaner 2549]

18 hours ago, selfmade said:

This is not a new thing to cryptocurrencies, that is why I always avoid bitcoin and ether, this coins tends to rise fees and transactions becomes too slow during bull runs.

In the crypto world the fees for expensive currencies tend to be a little higher.  Bitcoin and Ethereum transaction fees are usually a little higher.  However, we cannot avoid these coins even if we want to.  If you notice, you can see that many tokens or coins need eth's gas fee to claim.

[selfmade 7]

On 2/25/2021 at 4:10 PM, Cleaner said:

In the crypto world the fees for expensive currencies tend to be a little higher.  Bitcoin and Ethereum transaction fees are usually a little higher.  However, we cannot avoid these coins even if we want to.  If you notice, you can see that many tokens or coins need eth's gas fee to claim.

The coins you are talking about are must be RC-20 token, but not all coins are erc-20 tokens and they do not use ether gas fee. a coin like XLM, never have high fee and transactions are super fast.

[Froshk 1828]

If nothing is done about These high transactions fee on the ethereum network I believe other network can easily take advantage of that and outshine the shine of Ethereum

[Goyaa 2414]

I think if Ethereum still has high transaction fees it will be abandoned by its users, nowadays there are many complaints like that and many people spend money just to transact Ethereum, if it is not fixed soon people will switch to other altcoins. The current price hike for Ethereum is indeed good but it is still constrained by transaction fees, for now I first converted it to LTC before withdrawing it and converting it to fiat.

[selfmade 7]

It happened before and it happens to bitcoin all the time, sometimes when there is a bull run coins tends to increase fees.

[Calvinpriva 17296]

ETH fees is really a problem and mostly to small traders, many projects already noticed that and it is the reason for some of them to shift from ETH to BSC. Even if you'll make your own research, you will notice that many new projects are on TRC20 and BSC network, a few are in ETH.

[MrSpasybo 1049]

On 2/24/2021 at 9:31 PM, Whited35 said:

Frankly speaking, PoW-based blockchains are getting expensive to move the coins or tokens. If we locate the current case of Ethereum, who can afford to pay $25 worth of ETH to move $5 worth of Token. PoW-based Ethereum blockchain has the notorious demerits and definitely, small asset traders are more likely to loose their faiths into ETH. Myself, I have switched BNB to perform the active trading. 

@Whited35As Cardano was unable to give users access to smart contracts, BSC became Ethereum's biggest rival. Cheaper BNB, higher speed, lower cost have made many of Ethereum's users, including you, prioritize using BSC over Ethereum. This is a huge loss for Ethereum but is also a big driver for the Ethereum development team to propose EIPs & speed up the application process of layer-2 solutions.
Ethereum was unable to rest assured and fall asleep in victory.

[Whited35 15285]

11 hours ago, MrSpasybo said:

@Whited35This is a huge loss for Ethereum but is also a big driver for the Ethereum development team to propose EIPs & speed up the application process of layer-2 solutions.
Ethereum was unable to rest assured and fall asleep in victory.

Wait until July 😀 ! Ethereum is Ethereum and I am patiently waiting to move the bunch of ERC-20 tokens to cash out by performing their trades. Presumably, I have $250 worth of the scattered tokens in my different ERC-20 wallets. Currently, I can not afford to pay the fees to move all of such tokens from the wallet. BSC based tokens are being swapped and traded even inside the Trust and SafePal wallets without being directed toward exchange sites.  

[MrSpasybo 1049]

9 hours ago, Whited35 said:

Wait until July 😀 ! Ethereum is Ethereum and I am patiently waiting to move the bunch of ERC-20 tokens to cash out by performing their trades. Presumably, I have $250 worth of the scattered tokens in my different ERC-20 wallets. Currently, I can not afford to pay the fees to move all of such tokens from the wallet. BSC based tokens are being swapped and traded even inside the Trust and SafePal wallets without being directed toward exchange sites.  

@Whited35 

Yeah, high transaction fees are hindering users from using Ethereum. Perhaps only the rich will not be affected when they want to move hundreds of thousands of dollars and only pay 50-100 USD for gas.
3 years ago, I only paid 5 gwei for my transaction.
Currently, I have to pay 50 gwei at a good time to be able to make the transaction.
If someone pays 5 gwei now, it is almost certain that the transaction failed and he will lose those 5 gwei in vain.

I was able to feel the pain of investors in 2017 from being bitten by CryptoKitties ^^

Together wait until July with layer-2 + EIPs.

 

But: despite Ethereum's speed issue, it was chosen by Visa to test payments in USDC ^^

[Whited35 15285]

11 hours ago, MrSpasybo said:

Currently, I have to pay 50 gwei at a good time to be able to make the transaction.
If someone pays 5 gwei now, it is almost certain that the transaction failed and he will lose those 5 gwei in vain.

Nope, it won't work even you pay 50 Gwei now. Your transaction will be cancelled showing the underpriced errors. At least you have to pay Gwei above 100 now and it is at least $5 worth of ETH to move ETH or the ERC-20 tokens. I can still remember, I used to pay just 0.07 Euro worth ETH to move from my wallet. 

12 hours ago, MrSpasybo said:

But: despite Ethereum's speed issue, it was chosen by Visa to test payments in USDC ^^

Those who are seeing future in ETH, they are not getting frustrated due to current speed issues and they are patiently waiting for the better and improved ETH 2.0 😉

[MrSpasybo 1049]

On 4/1/2021 at 11:15 AM, Whited35 said:

Nope, it won't work even you pay 50 Gwei now. Your transaction will be cancelled showing the underpriced errors. At least you have to pay Gwei above 100 now and it is at least $5 worth of ETH to move ETH or the ERC-20 tokens. I can still remember, I used to pay just 0.07 Euro worth ETH to move from my wallet. 

Those who are seeing future in ETH, they are not getting frustrated due to current speed issues and they are patiently waiting for the better and improved ETH 2.0 😉

@Whited35 I was lucky enough to wait for the best time of the day to deposit my tokens. The transaction was successfully conducted after 20 minutes ^^
Fortunately, the transaction was not canceled and 50 gwei was not wasted.
I believe that ETH2.0 at 100K tps will help us to enjoy the crypto space better. Companies understand this as well, so they rely on Ethereum instead of blockchains with 21 nodes.

[Whited35 15285]

10 hours ago, MrSpasybo said:

@Whited35 I was lucky enough to wait for the best time of the day to deposit my tokens. The transaction was successfully conducted after 20 minutes ^^

More likely, you caught the less congested network so that miners mined your transactions even by paying the small gas fee. In my case, the last transactions was made on Morpher with the transaction fee $8 worth of ETH and after that I have already given up to make the more transaction on the Ethereum blockchain network until the hybrid system solution. 

10 hours ago, MrSpasybo said:

I believe that ETH2.0 at 100K tps will help us to enjoy the crypto space better. Companies understand this as well, so they rely on Ethereum instead of blockchains with 21 nodes.

I also wonder to see the people who are still  preferring the blockchain with the small number of participating nodes.