Sunday, December 5

Do you want to save commissions on Ethereum? take into account the time and day of the week

Transaction fees continue to plague users of the Ethereum network whose congestion is progressive as activity increases, while the price of ether (ETH) is above $ 4,000. However, it is possible to save a few dollars, if you operate or schedule at certain times of the day, especially on weekends.

Transacting during the wee hours, before 8 a.m. on any day, especially Sundays, could mean savings of up to 50% in transaction fees on the Ethereum network, notes analytical firm Coin Metrics in its most recent report.

The researchers discovered a pattern that holds when analyzing the cost of transaction fees on Ethereum every minute and day of the week. Based on this, they determined that rush activity may be the factor driving higher traffic, like the negotiations in decentralized exchanges, for example. Therefore, commissions are more expensive during those times.

To carry out its study, Coin Metrics only considered the fixed commissions per block that users must pay for their transaction to be included in a block.

After the activation of the Ethereum Enhancement Proposal (EIP) 1559, base rates fluctuate based on the demand for space in each block, rising or falling a maximum of 12.5% ​​depending on the capacity of each block. “In times of increased network traffic, demand for block space more often exceeds supply, leading to higher base rates,” notes Coin Metrics.

As CriptoNoticias has published, with the EIP 1559 update, the way in which fees are paid was changed: one part is burned and another goes to the miners as a tip. With this, the progressive reduction of the cost of transaction fees was expected, however, Coin Metrics researchers found that, Since the launch of this upgrade proposal, base fees on the Ethereum network have tended to be higher.

Included in the report is a chart showing the cost of commissions during US business hours, which are from 9 a.m. to 5 p.m. Monday through Friday.

Yellows represent higher base rates, while darker blues represent lower average base rates, for the eastern United States.

Why higher and higher commissions?

The Etherscan statistics indicate that at the time of this writing the fees exceed USD 25 per transaction. However, transferring Ethereum-based tokens and exchanging them using a smart contract is substantially more expensive and right now, doing so requires a commission payment in excess of $ 60.

Currently, Several elements influence the congestion of the Ethereum network. Analysts mention, among them, the boom in non-fungible token (NFT) -based projects like CryptoPunks and Play to Earn games like Axie Infinity.

NFT sales on OpenSea tend to be made with higher volume during United States business hours and the same is true for the use of Tether and USDC whose highest average transactions are made during those same business hours.

The number of business transactions is the most likely to influence the price of transaction fees and therefore analysts suspect that part of the recent increase in network activity and fees is related to the latest meme coin mania surrounding Shiba Inu, as reported by CriptoNoticias recently.

Regardless of the cause, users could schedule transactions that do not need to be performed urgently and If they do it according to the hours in which there is less traffic on the network, their savings could be significant. There are already solutions to automate tasks without the need to code any action and the adoption of these protocols could translate into savings in commissions.

Leave a Reply

Your email address will not be published. Required fields are marked *