Before we understand when the Ethereum miner fee is the cheapest, let’s briefly understand what a miner fee is. In fact, to put it simply, the miner fee is the handling fee paid to the miner, because when we transfer money on the Ethereum blockchain, the miner must package our transaction and put it on the blockchain before our transaction can be completed. This The process also consumes a certain amount of resources, so we must pay a certain fee to the miners. In different periods and different operations, the gas is also different, so when is the cheapest Ethereum miner fee? Many investors wonder when will Ethereum miner fees come down?
When are Ethereum miner fees cheapest?
The Ethereum wallet is probably the most frequently used cryptocurrency wallet, especially the DeFi liquidity mining boom some time ago has caused many users who have never used wallets before to put coins into their wallets to provide liquidity.
Now, the boom of liquidity mining has faded, and the average gas price of the Ethereum network has also returned from the previous peak of 709 Gwei to the current 50 Gwei. However, driven by BTC, the price of ETH is still challenging the new high of the year. The price of ETH has risen, and from the perspective of the legal currency standard, the miner fee required for transfer has become more expensive.
Let’s look at the calculation formula of Ethereum’s miner fee:
Miner fee = actual gas consumption * Gas Price
Among them, the “actual consumption of Gas” is less than or equal to the Gas Limit, which is easy to understand.
As mentioned above, how much Gas needs to be consumed in each operation step is stipulated in the Ethereum system, so we cannot adjust the “actual amount of Gas consumed”, but what we can adjust is “Gas Price”.
Ethereum miners, like Bitcoin miners, are all profit-seeking. Whoever gives a higher gas price will give priority to whoever packs for confirmation. Therefore, in the case of a particularly urgent situation that needs to be confirmed immediately, we need to give a higher Gas Price, so that the miners can confirm the package for us as soon as possible; and in the case of no emergency, we can lower the Gas Price., to save unnecessary miner fees.
Now, many wallets are “smart” and tell you the recommended value of Gas Price by analyzing the current network congestion situation. Of course, you can also manually adjust the Gas Price yourself, and the wallet will tell you how long it will take to be packaged by miners after the adjustment.
When will Ethereum miner fees drop?
The TPS of Ethereum 15 is far from meeting the market demand, resulting in soaring gas fees and a single transfer fee of up to 100 US dollars. Ethereum has become a “noble chain”, and the traffic that belongs to Ethereum has also suffered from many high-performance the sharing of the public chain, ETH2.0 and Ethereum L2 are to solve this problem but compared with the long development process of ETH2.0, Ethereum L2 is obviously a faster solution.
If Ethereum is likened to a highway, as the number of vehicles increases, congestion and other problems arise. At this time, other highways are built beside the highway to divert traffic to the highway, to solve the problem of congestion. This is the L2 network. Its role is to divert the flow of the Ethereum network. In the L2 network, because there are few users, the handling fee is relatively cheap. There have been many mature chains on the L2 track, and the reduction of Ethereum fees is just around the corner.
We can foresee that there will be more and more Ethereum second-layer networks, and as the volume increases, they will gradually form a competitive situation with Ethereum. In addition, the increase of L2 has gradually spawned chain bridges, which will eventually form a large network. However, for L2, what the editor of the currency circle wants to say is that the congestion problem of Ethereum will always exist, and L2 will always exist, but with the increase of users, the congestion of L2 may become the same situation as Ethereum.
Post time: May-23-2022