Ethereum, Bitcoin users reignite scalability debate as gas fees surge

At the time of composing, a deal from an Ethereum hot wallet features a network cost of $45.65 for a $300 transfer on decentralized exchange Uniswap, according to a test transaction carried out by Cointelegraph.Network expense on Ethereum hot wallet Rabby Wallet. Source: Rabby WalletThe rise in gas fees have actually prompted proponents of Solana and other blockchains to flaunt how much more affordable deals are on those respective chains.One X (previously Twitter) user, “Bobby Apelrod” noted that Solana only charges $55-60 per minute for all Solana users, while each “bad Ethereum user” needed to pay that much for a single transaction.Lol $SOL charged only 1.2 Sol ($ 55-$ 60) per minutes in TOTAL costs for the ENTIRE SOYLANA PLANET while the mean gas cost on $ETH increased to 160+ gwei, charging each poor ethereum user US$ 60 fees PER transactionMental disease imwo pic.twitter.com/WAtxjk1gzH— Bobby Apelrod// nicefeet.sol (@tofushit888) November 9, 2023

Prior to the cost spike, transaction expenses on Ethereum averaged out at $11.35 on Nov. 8, according to BitInfoCharts.

Nevertheless, critics have indicated a number of failures on Solana due to network congestion, arguing that a modular blockchain design is a much better approach to fix scalability.Magazine: Binances exec exodus, Nasdaq to trade AI orders and SBF loses bail appeal: Hodlers Digest, Sept. 3-9

Prior to the fee spike, deal expenses on Ethereum averaged out at $11.35 on Nov. 8, according to BitInfoCharts. Gas fee on Ethereum peaked at $196 on May. Gas fees on Ethereum over the last 3 years.

A current spike in deal costs on Ethereum and Bitcoin appears to have reignited the debate around services for scalability and the function of layer 2s. Over the last 24 hours, cryptocurrency users started sharing screenshots revealing double, sometimes triple-digit deal charges on Ethereum and Bitcoin. One screenshot showed gas fees were as high as $220 for a high-priority deal on Ethereum while other screenshots revealed figures around the $100 mark.Bitcoin users meanwhile, reported charges that were around $10 for high-priority deals. #Saitama #SaitaRealty To Add to Below Post This isnt even Height of Bull Run Already #ETH Gas Fees are Extortionate $175.79 This is why 1st Chance I get my #SaitaRealty #Saitama Will Go on #BNB Chain 2 Live Transactions Now if i Processed Now One on #ETH Gas Fee is … https://t.co/GYZy6L78Ku pic.twitter.com/JnOzNCK35X— POWELLY (@MPowelly01) November 9, 2023

A recent spike in transaction fees on Ethereum and Bitcoin appears to have reignited the dispute around services for scalability and the role of layer 2s. Over the last 24 hours, cryptocurrency users began sharing screenshots revealing double, occasionally triple-digit deal charges on Ethereum and Bitcoin. One screenshot revealed gas fees were as high as $220 for a high-priority deal on Ethereum while other screenshots showed figures around the $100 mark.Bitcoin users on the other hand, reported fees that were around $10 for high-priority deals. While this is reasonably low, the typical Bitcoin (BTC) transaction expense has hovered around $1 over the last 3 months, according to BitInfoCharts. BTC charges have not been this high considering that May. #Saitama #SaitaRealty To Add to Below Post This isnt even Height of Bull Run Already #ETH Gas Fees are Extortionate $175.79 This is why 1st Chance I get my #SaitaRealty #Saitama Will Go on #BNB Chain 2 Live Transactions Now if i Processed Now One on #ETH Gas Fee is … https://t.co/GYZy6L78Ku pic.twitter.com/JnOzNCK35X— POWELLY (@MPowelly01) November 9, 2023

” Currently, #PulseChain gas fees are 4 000X more affordable than Ethereum and 14 000X cheaper than Bitcoin,” said “KaisaCrypto.” The price of network costs is vibrant and is a product of demand or how crowded the network is.” How does this aid the unbanked and lower earnings population,” Lopez iterated in a post which revealed a “high concern” Bitcoin deal fee of $10.50 on Nov. 9.

He promotes for monolithic blockchain architectures in which consensus, data availability and the deal execution is all managed on the base layer. Solana is an example of this.Bitcoin and Ethereum on the other hand, are modular blockchains since they offload some transactions to a 2nd layer.All major scaling techniques can be divided into a spectrum with five classifications:1. Modular side chains: ATOM, DOT, AVAX2. Modular layer two: BTC, ETH, ADA3. Monolithic enshrined roll-ups: XTZ4. Monolithic execution sharding: EGLD, NEAR, TON5. Monolithic single chain: SOL, BSV– Justin Bons (@Justin_Bons) May 19, 2023.

Other Questions People Ask

What recent trends have emerged in Ethereum and Bitcoin gas fees?

Recently, Ethereum and Bitcoin users have experienced a significant surge in gas fees, prompting renewed discussions about scalability solutions. For instance, Ethereum gas fees reached as high as $220 for high-priority transactions, while Bitcoin users reported fees around $10, which is notably higher than the average of $1 over the past three months. This spike has led to comparisons with other blockchains like Solana, which boasts much lower transaction costs.

How are Ethereum and Bitcoin users reacting to the surge in gas fees?

The surge in gas fees has sparked frustration among Ethereum and Bitcoin users, with many taking to social media to express their concerns. Users have shared screenshots of exorbitant transaction costs, highlighting the disparity between Ethereum's fees and those of other blockchains like Solana. This has reignited debates about the effectiveness of current scalability solutions and the need for alternative blockchain architectures.

What are the implications of high gas fees on Ethereum and Bitcoin transactions?

High gas fees on Ethereum and Bitcoin transactions can deter users from engaging in regular trading and transferring activities, potentially stifling market participation. As transaction costs rise, users may seek more cost-effective alternatives, such as Solana or other blockchains that offer lower fees. This shift could impact the overall ecosystem, pushing developers to prioritize scalability solutions to retain user interest.

What scalability solutions are being discussed in light of rising gas fees?

In response to rising gas fees, discussions around scalability solutions have intensified, particularly regarding layer 2 technologies and modular blockchain designs. Critics argue that modular blockchains, like Solana, may provide better scalability compared to Ethereum and Bitcoin's current architectures. Proponents of these solutions believe that integrating consensus, data availability, and transaction execution on a single layer could significantly reduce costs and improve user experience.

How do Ethereum's gas fees compare to those of Solana during peak times?

During peak times, Ethereum's gas fees can skyrocket to levels significantly higher than those of Solana. For example, while Ethereum users faced fees as high as $220 for priority transactions, Solana users reported much lower costs, averaging around $55-$60 per minute for all transactions combined. This stark contrast highlights the ongoing debate about the scalability and efficiency of different blockchain networks.