Ethereum’s growth has been phenomenal, and its DeFi capabilities make it one of the largest blockchains. However, at the same time, the cost of being an Ethereum user has made it difficult for some people to work on the chain.
This led to the creation of layer-2 chains and cheaper L1s. Ergo, question – could Ethereum’s recent fee drop turn the tide once again?
Ethereum ready to beat Polygon?
Now, while the use cases for the world’s second largest blockchain will never be inferior to Polygon, Polygon cannot be surpassed in terms of operating costs.
Recently, Ethereum fees fell to their lowest level in two years, with the average cost of a transaction falling to 0.77 ETH – a level last seen in October 2020.
Ethereum gas fee drop , Source: Sentiment – AMBCrypto
Also on the Ethereum gas fee tracking page, at the time of writing, the base fee for on-chain transactions seemed to average 7 to 8 Gwei. In contrast, NFT and DEX transaction fees were around $1.52 – $4 at press time.
ethereum gas fee , Source: Etherscan
In contrast, Polygon’s base fee ranged from 40 Gwei to 66 Gwei today. It even reached 100 Gwei once a day.
Polygon Gas Fees , Source: PolygonScan
Still, Polygon is much cheaper than Ethereum. The reason behind this is the calculation of gas charges because Ethereum is calculated in ETH while Polygon is done in MATIC.
Thus, even at a low transaction cost of 7 Gwei on Ethereum, transferring 1 unit of native currency can go up to $0.62. On the other hand, 66 Gwei on Polygon will only cost $0.000358.
Along with this, the last time on the network also plays an important role in influencing an investor’s opinion. Polygon’s end time enables the transaction to be completed in 2.3 seconds. On Ethereum, only six transactions can be completed in a minute.
This is why, regardless of the low base cost, Ethereum won’t be able to beat Polygon’s fees despite hiking the latter.
Source: ambcrypto.com
FAQs
Polygon can validate transactions quicker than Ethereum; handling up to 700 transactions per second compared to Ethereum's average of 10. It charges much lower gas fees as a result; around $0.01 per trade compared to the average fee of $14 on Ethereum for a trade on Uniswap v3 in 2022.
Why is Ethereum better than Polygon? ›
Ethereum (ETH) vs Polygon(POL): Key Differences
Ethereum operates on a proof-of-work (PoW) consensus algorithm. Polygon uses a Proof of Stake (PoS) consensus algorithm. Limited scalability leads to higher transaction fees and slower confirmation times during network congestion.
Will Ethereum ever fix gas fees? ›
The Dencun upgrade will lower gas fees for the growing number of networks built on top of Ethereum. On Wednesday morning, the Ethereum blockchain completed an upgrade called Dencun, the biggest change to the network's code in over a year.
Are Polygon fees high? ›
Gas fees on the Polygon network reached as high as $0.10 during a mad rush to mint an Ordinals-inspired token called POLS.
Is there gas fee on Polygon? ›
Gas fees serve as transaction fees on the Ethereum and Polygon blockchains, enabling the processing and validation of transactions. It is important to note that Magic Eden does not determine or charge these fees; they are an inherent aspect of the blockchain networks themselves.
What makes Ethereum gas fees so high? ›
Gas fees rise and fall with supply and demand for transactions—if the network is congested, gas prices might be high. On the other hand, they could be low if there is not much traffic.
Why Polygon is the best crypto? ›
Unlike Ethereum, which can only process around 17 transactions per second, Polygon can handle 65,000 transactions per second, a remarkable improvement. Furthermore, the transaction fees on Polygon are much lower, costing only a few pennies compared to Ethereum's average transaction fee of around $15.
Why bridge Polygon to Ethereum? ›
The Polygon Bridge enables users to seamlessly transfer their tokens from Polygon to Ethereum. By bridging tokens, users gain increased liquidity as they can access a larger liquidity pool on the Ethereum network. This increased liquidity helps reduce price volatility and provides more trading opportunities.
Is ETH on Polygon the same as Matic? ›
Matic also happens to be a cryptocurrency on the Ethereum network. The difference is all about the blockchain. Despite being related projects--Polygon is built on the Ethereum network--failing to keep track of the blockchain on which a token is minted can create headaches for unwary token holders.
What crypto has zero gas fees? ›
SKALE offers zero gas fees by utilizing a native gas token — known as sFUEL — that has no economic or monetary value. This token is available to SKALE Chain owners upon chain creation to then distribute as they see fit.
By the end of 2030, the predicted Ethereum price could soar to a peak of $26,575.21. The current price of 1 Ethereum is $ 2,881.90761347.
What is the best crypto for gas fees? ›
Coins like Stellar, ReddCoin, Monero, Ripple, Bitcoin Cash, Dash, and LiteCoin are some of the crypto with the lowest gas fees. Looking for an exchange to day trade crypto? We've got you covered: Top 6 Best Crypto Exchanges for Day Trading.
Why choose polygons over Ethereum? ›
Differences: Scalability: Scalability is one of the main differences between Ethereum and Polygon. Ethereum has a limited capacity to process transactions per second, which can result in high gas fees and slower transaction times. Polygon, on the other hand, is designed to be a Layer 2 scaling solution for Ethereum.
Is Polygon good long term? ›
Polygon (MATIC) Price Prediction - Industry Expert Opinion
DigitalCoinPrice predicts that MATIC could reach $2.43 in 2023 and $3.91 in 2025. Their long-term projection for 2030 is $11.45. This optimistic outlook is based on the belief that Polygon's scalability solutions and growing adoption will drive its value.
What is the future price of Polygon? ›
Polygon (MATIC) Price Prediction 2030
| Year | Price |
|---|
| 2024 | $ 0.74729 |
| 2025 | $ 0.784655 |
| 2026 | $ 0.823888 |
| 2027 | $ 0.865082 |
1 more rowEthereum Average Gas Price is at a current level of 8.060, down from 10.30 yesterday and down from 43.63 one year ago.
Why is Polygon gas so cheap? ›
Polygon is much cheaper than Ethereum. The reason behind this is the calculation of gas fees, as Ethereum is calculated in ETH and Polygon is calculated in MATIC. So even transferring 1 unit of local currency on Ethereum with a low transaction cost of 7 Gwei can reach $0.62.
Which crypto ETH has the lowest gas fees? ›
On weekdays, ETH gas price is lowest from midnight to 4 AM (EST)—when most of America is asleep, Europe is just about to start their day, and Asia is finishing up their workday. The best time to make an ETH transaction is on a Saturday or Sunday from 2AM to 3AM (EST)—that's when ETH gas prices are at their lowest.
What is the currency of Polygon gas fees? ›
What are gas prices on Polygon PoS? Gas prices on Polygon PoS are the fees that users pay to have their transactions processed on the network. Gas prices are denominated in gwei, which is a unit of measurement equal to 0.000000001 MATIC.
