Why Are Ethereum Fees So High? Ethereum Gas Fees

Krutika Adani

Understanding Ethereum's High Fees

Ethereum fees (also called gas fees) are notorious for spiking during network congestion.

Supply and Demand

Ethereum’s popularity attracts thousands of transactions daily. High demand for block space leads to competition, driving up gas fees.

Smart Contracts and DeFi

Activities like DeFi staking, NFT minting, and token swaps require more computational power. More complexity = Higher fees compared to simple token transfers.

Ethereum’s Limited Throughput

The network processes about 15 transactions per second (TPS). With a surge in activity, delays increase and fees skyrocket as users outbid one another to get priority.

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