TL;DR Breakdown
- During the first half of 2021, the gas price for ETH transfer had surged to all-time highs.
- On Sunday, the gas price of Ethereum went to its yearly low of around 3 Gwei.
- It took almost $0.12 to make a transaction on ETH for any trader.
In layman’s terms, the gas fee is the computation power required to implement a certain action on the Ethereum chain. So, whenever an organization comes up with a project for the ETH chain, they have to pay the gas fee on various levels. This gas fee caused a huge ruckus on the Ethereum network when the congestion was back in early 2021 and late 2020.
When Ethereum was reaching new heights, there was a lot of speculation from various companies who wanted to build their DeFi projects on the network. The investors in the coin were tired of such high fees, and some people paid as high as $120 in gas fees, which was just remarkable. The gas fee reached as much as 500 gwei, and hence, another option opened for investors, the Tron20 Network.
Ethereum gas fee went as low as $0.12 for a transaction
On Sunday, the gas fee for Ethereum transfers was the lowest for the year. The price was around 3 gwei or $0.12. The average fee was around 5 gwei, i.e., around $0.15, and the highest was 6 gwei or $0.39. For today, the gas fee for any transaction on Ethereum are as follows:
When the transfer fee was high, the congestion was also high as the price per ETH reached new heights. The confirmation time also increased, and therefore, Tron caught the attention of potential investors. Investors found Tron fast, and the gas fee was low. This is the reason why the demand flourished for Tron, as the transaction fee for Tron20 was around $1. People couldn’t imagine paying such a huge transfer fee whenever they collected rewards or triggered a smart contract and the Tron20 network offered an escape.
We are witnessing a huge drop in the gas fee of Ethereum due to various reasons. Firstly, the volume has decreased to $21,158,200,219.75 (last 24 hours). Another fact is that to reduce the congestion on the Ethereum network, the developers had recently activated the EIP 1559 London hardfork on the Ropsten network.
Compared to Tron20, the ETH transfer fee is minute, so a major shift is occurring. The shift from ETH to Tron20 was mainly due to transaction fees. The practical implementation of Tron was rare, and hence, most people couldn’t use it for day-to-day purposes. In 24 hours, the difference in the volumes of the 2 networks is visible as Tron volume is down by 7.82 percent at $830,608,445.73 while Ethereum volume is up by 7.36 percent, which is nearly identical.
It was reported in May that Binance had paid $10 million in terms of gas fees. The launch of ETH 2.0 was also aimed to reduce this congestion and decrease the fee involved. Currently, ETH 2.0 is in the second phase. With such low transaction fees, the tide is turning for Ethereum, and now, the volumes are shifting from Tron20 to ETH.
