The rapid rise in transaction fees on the Ethereum (ETH) network is showing no signs of stopping, after yesterday doubling from its all-time high seen just a day earlier.
In what has been an extraordinary sharp rise, Ethereum fees needed only one day to double from what was already an all-time high in the median transaction fees of USD 3.5 seen on Monday this week.
Following the latest exponential rise, the median fee level hit USD 7.07 yesterday.
Meanwhile, Ethereum Co-founder Vitalik Buterin shared his thoughts on why fixing the high fees is more difficult than what he called “certain ‘naïve’ solutions” make it out to be:
A quick thread on supply and demand economics, and why certain “naive” solutions to high gas prices won’t work. https://t.co/lmmyx0x8vL
— vitalik.eth (@VitalikButerin)
“So what does work?,” Buterin followed up by asking, before going on to answer his own question by saying that “Increasing transaction capacity” through rollups and sharding is the solution.
“The only solution to high [transaction] fees is scaling. Tether, Gitcoin and other apps are doing the right thing by migrating to ZK rollups today. I’m excited about the soon-upcoming optimistic rollups that will generalize rollup scaling to full [ethereum virtual machine] contracts,” Buterin said, adding that sharding from Ethereum 2.0 will also help “in the somewhat longer term.”
Also commenting on the issue today was Changpeng Zhao, CEO of the major exchange Binance, who said that the high fees are causing real problems for both for his own exchange as well as others in the industry.
The high ETH network gas fees is causing problems for most exchanges, running with $10-20 loss on each withdrawal.… https://t.co/QlOTCn3Kst
— CZ Binance (@cz_binance)
Gas fees are pricing out littler guys.
— The Crypto Dog (@TheCryptoDog)
Meanwhile, as reported yesterday, Anthony Sassano, Co-founder of Etherhub and the product marketing manager at SetProtocol, claims that help could come in the form of two promising leads on the network.
As of pixel time (12:19 UTC), ETH was down nearly 5% over the past 24 hours, after seeing a correction begin around two hours earlier. However, the cryptoasset is still up more than 15% over the past 7 days, currently trading at USD 445.