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A Glimpse at Ethereum Gas Fees: Alternatives to Layer-1 Blockchain

source-logo  en.coin-turk.com 18 November 2023 23:15, UTC

Ethereum (ETH) gas fees have been continuously rising in the past month, prompting developers, investors, and cryptocurrency users to seek alternatives to the layer-1 blockchain.

Ethereum Gas Fee Current Situation

As shown in the graph below, Ethereum’s average gas fees rose from $1.5 on October 15th, according to data provided by BitInfoCharts, to a recent average of $6.35 recorded on November 17th. Data from CryptoQuant revealed that users paid $6.9 million in ETH gas fees in a single day.

In similar situations in the past, the emergence of high fees has led to the search for alternative layer-1 blockchains with similar or lower gas fees. In response to this, ChatGPT was asked to share some alternatives. According to ChatGPT, the answer was not as far-fetched as believed. Here are the three alternatives named by ChatGPT.

BNB Chain (BNB)

The first network preferred by ChatGPT is the layer-1 blockchain created by Binance, the world’s largest exchange in terms of volume, called Binance Chain (BNB). Interestingly, BNB also experienced a price increase since Ethereum gas fees started to rise, with a 14.66% increase compared to the previous month. At the time of writing, BNB was at $242.13.

ChatGPT’s comment on BNB Chain was as follows:

Binance Smart Chain is known for its low transaction fees and fast confirmation times. It operates in parallel with Binance Chain but adds smart contract functionality. BNB is the native cryptocurrency of Binance Smart Chain and can be used to pay transaction fees and participate in various decentralized applications (DApps). The high efficiency and low fees prioritized by Binance Smart Chain make it an attractive option for users looking for an alternative to Ethereum.

Solana (SOL)

Especially after the FTX events, Solana (SOL) experienced a significant recovery and became one of the best performing cryptocurrencies of the year. The second choice by ChatGPT was based on more efficient gas fees. Additionally, SOL was trading at $56.13 at the time of writing, with an incredible 136% monthly gain.

ChatGPT’s comment on Solana was as follows:

Solana stands out with its high transaction volume and low transaction costs. It uses a unique consensus mechanism called Proof of History (PoH) to increase scalability and reduce transaction confirmation times. Solana aims to provide a fast and cost-effective platform for decentralized applications. Its growing ecosystem includes various projects and decentralized exchanges (DEXes) that benefit from performance advantages compared to Ethereum.

Cardano (ADA)

Meanwhile, Cardano (ADA) was ChatGPT’s third choice. Cardano is one of the top performers among the “Ethereum killers”. ADA has provided investors with a 46% gain in the past 30 days and was trading at $0.36 at the time of writing.

It should be noted that ChatGPT considered factors such as security, scalability, decentralization, and adoption when evaluating these projects.

Disclaimer: The information in this article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and they should conduct their own research before making any transactions.