Researchers Explain How to Cut Ethereum Transaction Costs

The summer 2020 boom in the decentralized finance sector has led to higher Ethereum network fees. Flipside Crypto analysts have determined the times of day when users can save on transactions.

Ethereum fees have been the topic of conversation lately, as they can get too high to make transacting affordable — is there a best time to transact? @flipsidecrypto investigates! #Crypto #Cryptocurrency #Altcoin #Ethereum #ETH $ETHhttps://t.co/QzqCbjcJhN

— CoinMarketCap (@CoinMarketCap) January 27, 2021

The problem of high costs when interacting with DeFi apps remains relevant today. On January 11, the average fee on the Ethereum network — the second-largest cryptocurrency by market capitalisation — reached a new high of $19.24. By January 28, the metric had fallen to $6.61. The Ethereum founder Vitalik Buterin had previously stated that “years remain”.

Data: Blockchair.

Flipside Crypto analysts built a sample of fees by hourly intervals for 2020 to identify periods with the highest and lowest values.

In the illustration below, blocks highlight zones with the densest data. The colour indicates the fee size. Black dots denote [simple_tooltip content=’резко отклоняющиеся значения’]statistical outliers[/simple_tooltip].

Structure of Ethereum fees by time of day. Data: Flipside Crypto.

Researchers found that the highest fees occur from 2 to 6 PM UTC (from 17:00 to 21:00 Moscow Time). The lowest fees for the network are typical during the night hours (4:00–6:00, 8:00–11:00, 12:00–14:00 Moscow Time).

Number of Ethereum transactions by size of wallets. Data: Flipside Crypto.

Transaction analysis by time zones showed roughly equal activity between Asia and the United States.

Ethereum transaction fees by time zones. Data: Flipside Crypto.

As a reminder, the social content platform Reddit announced a partnership with the Ethereum Foundation to develop scaling solutions for the second-largest cryptocurrency.

In January, the synthetic-asset platform Synthetix carried out a preliminary launch of the Ethereum Layer-2 solution Optimistic Ethereum (OΞ).

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