Crypto:
30349
Bitcoin:
$64.275
% 0.10
BTC Dominance:
%54.0
% 0.22
Market Cap:
$2.34 T
% 1.02
Fear & Greed:
63 / 100
Bitcoin:
$ 64.275
BTC Dominance:
% 54.0
Market Cap:
$2.34 T

Exorbitant Gas Fees Highlight Ethereum’s Ongoing Challenges Despite Upgrades

Ethereum Fees

The deal was initiated in the wallet of one of the most recognized memecoin and NFT lovers, Jared from Subway.eth. The transfer was made to the MEV Bot wallet to which all of the MEV fees are sent to be processed. The reason why the costs paid seem so peculiar is because those costs were paid for transferring a paltry 0.000012 Ethereum, equaling $0.05.

Understanding MEV Bots and Gas Fees

Most importantly, the Miner Extractable Value bots, commonly referred to as MEV bots, are an artificial intelligence program that operates in the cryptocurrency network of Ethereum. In order to seize moments when they can get more money, they change, exclude, or include some transactions within a block. This explains the exorbitant price for gas that is charged by the Ethereum network. Ethereum gas fees have been the subject of numerous complaints and comments starting from the year 2023 on all the social media platforms.

There are factors that can be attributed to the high prices of these tokens; some include limited block space, network congestion, and MEV bots that overuse the dApps. Customers, for instance, need to spend considerably more during times of higher demand for network utilization, such as the creation of popular, recognizable NFTs or fluctuations in prices.

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This is a problem even to date when Ethereum has shifted from a proof-of-work consensus mechanism. With the help of EIP-1559, among other fixes designed to reduce these costs, the organization has not turned the focus on this important problem.

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After Ethereum moved to the proof-of-stake consensus and integrated EIP-1559, the problem of high transaction fees persists as well as after other improvements and suggestions meant to tackle the fees. Customers who have always voiced out their concerns have called for affordable, and preferably easily scalable technologies.

Thus, the excessive price that Jared of Subway paid stands as a timely wake-up call when it comes to addressing such matters in the crypto sphere, with painfully long waiting times.

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