Analysis of Ethereum Gas Fees

On the Ethereum network, “gas” in the form of ETH must be paid for every transaction, whether it is to send tokens or to interact with apps and smart contracts. With increasing network demand and on-chain volume, gas prices have increased steadily over the past year.

Persistent high gas prices can pose significant barriers to the widespread adoption of DeFi products when the cost of usage becomes prohibitive for the average consumer. This fact has been underscored this year by the rise of various L1 blockchains like Binance Smart Chain, Solana, and Fantom, among others, all of which boast significantly lower transaction fees on their respective networks.