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Avalanche Fees Temporarily Spike, Exceeds Ethereum’s Layer-2s

by Dalmas Ngetich
Apr 22, 2022 - 12:00 am
in Blockchain
Avalanche

Network users have noted an unusual transaction fee spike on Avalanche’s C-chain. Some claim that it stands at twice the amount paid in some of Ethereum’s layer-2 platforms like the Metis Network and Loopring.

As per a screengrab on April 21, transaction fees on the C-Chain stood at $0.114 versus roughly $0.02 in the Metis Network, an Ethereum layer-2 protocol.

why is avax gas fee twice as high as $eth L2?

this does not make sense for gaming or social web3 😒 pic.twitter.com/Qp9WywYnBs

— 0d1n fr33 🐺🐱 (@odin_free) April 21, 2022

When writing on April 22, average fees stood at $0.15 as per data streams from Snow Trace, the Avalanche C-chain Explorer.

On the other hand, transaction fees on Ethereum layer-2 platforms like Loopring, Optimism, and Arbitrum were relatively higher.

For instance, to transact on Arbitrum, a user had to pay $0.74 when sending ETH and $1.03 to swap tokens. Arbitrum, a multipurpose layer-2 platform using rollups, currently has a total value locked (TVL) of $3.72 billion.

This is relatively several magnitudes higher than in Avalanche, where users only had to pay on average $0.114 or lower when processing any form of smart contracts.

Avalanche comprises three chains, of which the Contract Chain, or the C-Chain, allows for the deployment of Ethereum Virtual Machine (EVM)-compatible smart contracts using the Snowman consensus algorithm. It is a choice Avalanche chain for projects seeking to launch DeFi protocols, blockchain gaming, and any other operation requiring the use of smart contracts.

The temporary spike in transaction fees was due to the deployment of the Crabada game. The Crab-themed decentralized play-to-earn game rewards participants with their in-game tokens, TUS and CRA.

As a highly interactive and rewarding game, the influx of users has increased block space demand in the C-Chain. Subsequently, this has temporarily pushed transaction fees higher. However, in the next few weeks, the Crabada game will be moved to its sub-net (equivalent to sidechain) on Avalanche, relieving the C-Chain and restoring normalcy.

Tags: AvalancheEthereum
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

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