High gas charges are not only a problem for ETH, SOL is not immune either
High gas fees are not a problem for Ethereum alone, as competitors like Avalanche and Solana are not immune despite lower fees. As they grow, gasoline charges can skyrocket as we read more on today’s altcoin news.
A few weeks ago, the debate about ETH’s high gas fees re-emerged when competing smart contracts like Solana received more attention. Fuel fees can still be a big problem at Defi, regardless of the chain chosen. Ethereum is the first and most popular smart contract layer 1 blockchain, but it is very expensive to use. Simple token swaps on decentralized exchanges can be more expensive and complicated.
During the bull market that started around January 2020, the fees for Ethereum were still a sore spot for users and went up and down even more, but the average fuel price has never been this high during that time. This is because as the bull run progresses, more and more users join the network. This story is a huge boon for Layer 1 networks like Solana and Avalanche as they offer rich crypto experiences without the high cost. A Redditor wrote back in August when he was using a decentralized exchange on Avalanche:
“Almost [$2] because that [a] Small transactions on pangolin. It seems [no one] talk about. Am I the only one [minds]? How would you like to create a P2E game for this? Come again [a] lower cost than prob chain. ”
Another person wrote:
“I was impressed with the speed of this network, but in terms of fees, the Polygon and Kucoin networks are much cheaper. I make over 1,000 trades / week on AVAX in [its] Current status [it’s] just not for me. ”
Subnets are similar to sidechains on Ethereum, are operated in large quantities from the main network and enable higher throughput and lower costs. These types of networks are fee markets in which transactions compete for the block space to be processed. As the block space fills up, the market becomes more competitive. Solana and Avalanche both have increased block sizes, so the tradeoff here is that a node operator or reviewer with higher hardware requirements can pose a centralization risk. However you see, no matter how you look at it, more activity comes at a higher price. If we believe that blockchain technology is the foundation for financial markets, the current context suggests that the future will be very costly.