The perpetual full blocks have been identified as the main reason for the exorbitant gas fees that have now reached their all-time high of late.
Coin Metrics is an analytics provider and has recently reported from delving deep in the Etehreum world that the transaction fees are still very high and touched their highest levels ever. Coin Metrics has informed, that a much-advertised forthcoming network upgrade will also not be able to resolve this issue.
Ethereum Network Upgrade Unlikely To Bring Down Gas Fees
Coin Metrics has released their report titled Ethereum Gas wherein they have suggested that the median fees of Ethereum have remained perpetually more than $10 since the very beginning of 2021. In comparison, the average transaction fees hit the mark of $5.70 during the high bull run of 2017/2018.
One reason behind the increasing gas fees is the increasing ETH price itself that drove up the gas fees. In the year 2021, ETH witnessed a spike of a massive 125% despite the 19% correction from the $2,050 record high. On the other, during the correction period, the median fees of gas had spiked by an enormous 532%.
The report has found out that the increased number of transactions is the main reason and not DeFi. They also explained how miners must state the transactions that will be included during new block mining and the limited transaction number in each block that ranges between 160 and 200.
The highly endorsed EIP-1559 upgrade of the network intended to change the process of auction and burn little fees does not seem capable of resolving the high gas fees problem. Although it can solve the scaling issues. The report has mentioned this upgrade can only make the gas fees predictable not reduced.
