The Ethereum network requires gas to operate efficiently and securely, much like a vehicle requires fuel to run smoothly. This fuel, known as ‘gas’ (no pun intended, it is actually called gas), is essential for Ethereum’s operations. The network has become increasingly popular in recent years, particularly for decentralized finance (DeFi) transactions, resulting in network congestion and higher crypto gas fees.
If you are wondering how to avoid Ethereum gas fees, it is important to first understand what Ethereum gas fees are and why are ETH gas fees so high. Also, we will discuss how to get free gas fee for ETH and if it is really possible.
In essence, the Ethereum gas fee refers to the cost incurred when executing a transaction on the Ethereum blockchain network. The network requires a specific amount of computational power, which is provided by miners using Ethereum mining software. These miners generate Ethereum tokens (ETH) to maintain the network’s security and, in return, receive compensation for their contributions in the form of gas fees. The gas fee is denominated in Gwei, where one Gwei is equivalent to 0.000000001 ETH.
A collection of crypto transactions is called a block and the size of a block is different for different blockchains. For instance, theoretically, Bitcoin’s block size is 4M, but its average size is 1MB.
Contrary to Bitcoin, Ethereum’s block size changes due to the gas spent on a block rather than a data limit. At the moment, the gas limit per block is 30 million gas, but the target size is 15 million gas per block.
Why are ETH Gas Fees so High?
When you make a transaction on the Ethereum blockchain, it competes with other transactions to get in the next block and get sent to the network to get validated. So, if the network is congested, you may need to pay something extra to push the transaction ahead of others. This increases the crypto gas fees.
The Ethereum network experiences increased congestion as the competition to validate transactions grows. This congestion further compounds as the number of transactions on the network increases due to Ethereum’s widespread success in various processes such as decentralized exchanges (DEX), blockchain games, DeFi, ERC-20 token transfers, and social and marketplaces. Additionally, as dApps introduce more features, their functionalities become more intricate, causing smart contracts to perform more operations, which results in a more congested network since complex transactions require more space.
To avoid Ethereum gas fees, there are several methods, and we’ve outlined eight of them for you to use.
How to Avoid Ethereum Gas Fees
- Use DeFi Saver App
- Optimize your Transaction Timings
- Use DApps That Offer Discounts and Rebates
- Utilize Gas Tokens
- Accurate Calculation of Ethereum Gas Fees
- Use a Layer-2 Blockchain
1. Use DeFi Saver App
Paying gas fees is tricky because you won’t know how much gas fees you are going to pay until making the transaction and paying for gas. But, to save your gas fees on your transactions, you could use the DeFi Saver app.
- First, combine the Ethereum activities and then rum them virtually.
- The simulation will estimate the gas fee in ETH.
- As per the estimate, you can customize the Ethereum activities to minimize gas fees.
- Lastly, execute the activities on the network and pay less gas fee.
2. Optimize Your Transaction Timings
Higher gas fees on the Ethereum blockchain are primarily caused by network congestion. However, the level of congestion varies throughout the day, and you may notice that the same transaction costs less during certain times.
Tracking these lower congestion times manually can be challenging and may impede your productivity. To make this task easier, you can visit the Ethereum Gas Charts webpage, which provides detailed graphs of gas prices throughout the week. In addition to this, you can reduce your gas fees by avoiding working hours on weekdays.
If you need to perform a transaction during the weekdays, consider carrying them out after midnight when the network is less congested. Alternatively, waiting until the weekend when gas prices tend to be lower can also help you reduce your gas fees.
3. Use DApps That Offer Rebates and Discounts
One of the easiest ways to avoid Ethereum gas fees is to use Ethereum projects and dApps that offer fee subsidies or nominal fees. If you are looking for such a platform, Balancer is a great one. The platform refunds the gas fees up to 90 percent in the form of BAL tokens. Balancer minimizes the gas fees for high-frequency traders by carrying out traders that don’t leave the vault.
Other DeFi apps such as Yearn’s V2 Vault and KeeperDAO combine individual user transactions. Then, the user pays the gas fees together instead of paying them individually. This saves a lot of gas fees.
4. Utilize Gas Tokens
If you remove your storage variables on the blockchain, you can earn ETH and create gas tokens. This process forms the basis of gas tokenization. When the gas fees are low, you can mint a significant number of gas tokens. During the execution of your transaction on the blockchain, you can redeem your gas tokens for Ether, which can later be used to pay a gas fee. GasToken.io is one of the fastest and easiest ways to mint gas tokens.
5. Accurate Calculation of Ethereum Gas Fees
An Ethereum wallet does not consider real-time congestion of transactions and therefore, it cannot estimate accurate gas fees. You can use specialized tools such as Gas Now or Etherscan’s Gas Tracker if your transactions are time-sensitive.
These specialized tools evaluate pending transactions on the network and then calculate the gas fees. Ultimately, these tools help you save a lot of gas fees and even help you avoid penalties in case you forgot to set the correct gas limits.
6. Use a Layer-2 Blockchain
The Ethereum Mainnet, also known as Layer One, is frequently congested, making transactions costly. Layer-two blockchains offer users the ability to scale up their transactions, and they do so by utilizing technologies such as Rollups and side chains.
This results in lower gas fees and faster transaction completion times. If you are looking for a solution to reduce transaction costs, you may want to consider using layer-two solutions such as Arbitum, Optimism, and Polygon.
Will Ethereum 2.0 Reduce Gas Fees and Make Ethereum Cheaper to Use?
Ethereum might tackle the expensive gas fees situation permanently with its Ethereum 2.0 upgrade. In fact, one of the reasons Ethereum is upgrading is to reduce gas fees, as a part of reducing network congestion and speeding up the blockchain.
There are two ways the gas fees will reduce with the ETH 2.0 upgrade. The first is sharding and the second is the switch from the PoW consensus mechanism to the PoS consensus mechanism. With the switching of the consensus mechanism, you don’t have to solve intricate maths puzzles to maintain network integrity. This also leads to fewer transaction fees all while making it easier for extra nodes to join the network and validate transactions. This is a win-win for Ethereum as it reduces gas fees and helps scale the blockchain network.
Now, let’s see if we can really get a free gas fee for ETH.
How to get free gas fee for ETH?
Gas fees are an essential part of the Ethereum network, and they are necessary to incentivize miners to process transactions and secure the network. As a result, there is no way to completely avoid gas fees for Ethereum transactions. However, you may be able to reduce the gas fees you pay by using gas tokens like CHI or participating in airdrops that distribute tokens that can be used to pay gas fees. Additionally, using layer-two scaling solutions like Optimism or Arbitrum can reduce the gas fees you pay on the Ethereum network.
Concluding Thoughts on How to Avoid Ethereum Gas Fees
There are many ways to reduce gas fees and we hope in this guide we have answered the question of how to avoid Ethereum gas fees. These tools are well-known and often used by Ethereum users to reduce gas fees. But, with the Ethereum upgrade, the gas fees conundrum might solve itself, but until the upgrade takes place, daily Ethereum users can use these tips and tricks to save a ton of gas fees.
FAQs – Ethereum Gas Fees
1. How to avoid Ethereum gas fees?
Ethereum blockchain users often have to pay higher gas fees as the network is congested during peak hours. But, there are certain tips that you can use to reduce gas fees such as:
2. Why is the Ethereum gas fee so high?
Ethereum can process 15 transactions per second and with millions of users using the blockchain at the same time, the network gets congested. When you make a transaction, it competes with other transactions to get in the next block and get sent to the network to get validated. So, if the network is congested and your competitor might pay something extra to push the transaction ahead of others. This increases the gas fees.
3. What time is ETH gas fees lowest?
The time can vary as per your timezone, but you can use Ethereum Gas Charts. This tool helps in determining the gas fees by looking at peak transaction hours based on your local timezone. You can easily estimate your gas fees and set correct limits to avoid penalties.
4. How to avoid ETH gas fees on Uniswap?
There are several ways to avoid or reduce Ethereum gas fees on Uniswap, a decentralized exchange platform. Some of these include using gas optimization tools, monitoring gas prices, selecting off-peak hours for transactions, utilizing layer-two solutions such as Polygon, and taking advantage of Uniswap’s liquidity pools to reduce transaction costs. Additionally, you can try swapping for alternative tokens that may have lower gas fees, or consolidating multiple transactions into a single one to save on gas costs. So, if you are still wondering how to avoid ETH gas fees on Uniswap, the above-mentioned ways can help.
5. How to avoid gas fees on Metamask?
So, how to avoid gas fees on MetaMask? Avoiding gas fees on Metamask, a popular Ethereum wallet and browser extension, can be challenging but there are a few ways to reduce them. Firstly, you can choose a lower gas price for your transaction, which may result in a slower processing time but will ultimately save you money. Secondly, you can try using layer-two solutions such as Polygon to conduct transactions with lower gas fees. Additionally, you can use gas optimization tools and monitor gas prices to ensure you are getting the best possible rate. Lastly, consolidating multiple transactions into a single one can help reduce gas costs.
As an enthusiast deeply immersed in the world of blockchain technology and cryptocurrency, particularly Ethereum, I can provide valuable insights into the concepts discussed in the article. My expertise stems from a thorough understanding of the Ethereum network, its underlying mechanisms, and the dynamics of gas fees. Here's a breakdown of the key concepts covered in the article:
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Ethereum Gas Fees:
- Ethereum operates on a proof-of-work (PoW) consensus mechanism, and executing transactions on its blockchain requires computational power, measured in gas.
- Gas is the unit used to quantify the computational work required for a transaction. It's denominated in Gwei, where 1 Gwei equals 0.000000001 ETH.
- Miners, who use Ethereum mining software, contribute computational power to process transactions and are rewarded with Ethereum tokens (ETH) as well as gas fees.
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Block Size and Gas Limit:
- Unlike Bitcoin, Ethereum's block size is not fixed. It changes dynamically based on the gas spent on a block rather than a data limit.
- The gas limit per block is currently 30 million gas, but the target size is set at 15 million gas per block.
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Why ETH Gas Fees Are High:
- Ethereum transactions compete for inclusion in the next block, and during network congestion, users may need to pay higher gas fees to prioritize their transactions.
- Network congestion arises due to increased transaction volume, driven by the success of decentralized exchanges (DEX), blockchain games, DeFi, ERC-20 token transfers, and various dApps.
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Methods to Avoid Ethereum Gas Fees:
- DeFi Saver App: Combines and simulates Ethereum activities to estimate gas fees, allowing users to customize activities to minimize costs.
- Optimize Transaction Timings: Track lower congestion times and perform transactions during off-peak hours.
- Use DApps Offering Discounts: Platforms like Balancer refund gas fees or combine transactions to reduce costs.
- Utilize Gas Tokens: Gas tokenization involves creating tokens during low gas fee periods and redeeming them for Ether during transaction execution.
- Accurate Calculation of Gas Fees: Specialized tools like Gas Now or Etherscan's Gas Tracker help estimate real-time gas fees.
- Use a Layer-2 Blockchain: Layer-two solutions like Arbitrum, Optimism, and Polygon offer lower gas fees and faster transaction times.
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Ethereum 2.0 and Gas Fee Reduction:
- Ethereum 2.0 aims to address high gas fees through sharding and transitioning from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus mechanism.
- Sharding and PoS reduce transaction fees and network congestion, making it easier for additional nodes to join and validate transactions.
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Getting Free Gas Fee for ETH:
- Gas fees are integral to the Ethereum network to incentivize miners. While complete avoidance is not possible, strategies include using gas tokens like CHI or participating in airdrops to acquire tokens for gas fee payments.
- Layer-two scaling solutions like Optimism or Arbitrum can also reduce gas fees.
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FAQs on Ethereum Gas Fees:
- The FAQs address common user queries, such as tips on avoiding gas fees, reasons for high gas fees, the timing of lowest gas fees, strategies for Uniswap and MetaMask, and the potential impact of Ethereum 2.0 on gas fees.
In conclusion, the article provides comprehensive guidance on understanding, managing, and potentially reducing Ethereum gas fees, catering to both novice and experienced users in the Ethereum ecosystem.
