High Ethereum fees are driving users to leave to other blockchains

by in Cryptocurrency News

Ethereum

Ethereum transaction fees have started to rise since August 22nd.

Last Friday, August 27, the average commission on the blockchain reached $ 38.3 - this is the highest value since May 2021.

Ethereum fees have continued to climb despite recent updates from London and EIP-1559. Since mid-August, the cost of processing a transaction has more than doubled.

Analysts attribute this trend to a sharp increase in user activity in the DeFi and NFT decentralized finance markets. Last week, commissions on the UniSwap platform reached $ 300, and on the OpenSea NFT platform, they even exceeded $ 1000.

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Many observers believe that the surge in fees is forcing internet users to migrate to other blockchains where funds can be sent at a lower cost.

The closest competitor to Ethereum may be Cardano. This network will receive a massive Alonzo update on September 12th.

The developers promise that after the fork is activated on the blockchain, there will be an option to deploy smart contracts. In this case, Cardano automatically becomes a convenient platform for DeFi and NFT projects.

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Another major contender is the Binance Chain. According to the BscScan service, this blockchain currently processes just over 7.8 million transactions per day. The average commission is around $ 3. If the transition to the updated ETH 2.0 network does not solve the problem of high Ethereum fees, then users will begin to massively leave for other blockchains.

In addition to Cardano and Binance Chain, networks such as EOS, Polkadot, Solana, Terra, and Tron will also be able to acquire new users.