High Transaction Cost Crippling Ethereum-based NFTs, Community Cries Out
The Non-fungible Tokens (NFT) on Ethereum are facing a huge transaction cost, thereby crippling the ecosystem, the NFT community has cried out.
Seeking help from the likes of the co-founder of Ethereum, Vitalik Buterin, Mintable.App submits that the community is presently on the brink of collapse. The platform says the cost of transactions on the Ethereum network is quite high.
In some instances, the cost of minting NFTs could be higher than the selling price, hence reducing people’s participation in the space. These indicate that creators either decide to not produce NFTs or make meager from production. It is still possible for creators to increase the selling price of the NFTs or “eat the fees”.
As the cost of minting is proportional to the number of NFTs made, Mintable believes the high cost mean “trash art” NFTs won’t be produced in high quantities again, denoting that creator won’t have a high chance of earning cryptos for their works.
Mintable, a platform offering free tools for the creation of smart contracts for collectibles and digital items, says to mint a token, the creator need 300K at 50 gwei, which is approximately 3 per token, however, to deploy contract is around 3.5mil at 50 gwei, which is approximately $32. Those who mint 40 tokens pay a whopping cost of $75 bucks. The translates to higher costs of items and submission, that is, that both buyers and sellers are at a loss.
The high cost of transaction reduces the number of people who wants to enter into the industry since there are lesser people having $75 worth of Ethereum to spend on NFTs.
The platform reminded the world that the NFT space cannot be compared with DeFi where it is okay to pay $50 in transaction cost on a thousand-dollar profit.
Responding to how to solve the issue, Mintable appears to be looking up to Ethereum co-founder Vitalik Buterin and some other important personalities in the ETH ecosystem.
Ethereum network fees have been on the increase. A few days back, a prominent Ethereum proponent said in the last 16 days, Ethereum users have paid more than Bitcoin users purposely to use the network.
On June 11 especially, the average transaction fee of Ethereum stood at $4. At present the Ethereum transaction fee has dropped low, staying around $0.6.