Try Quests to earn FLOWGas Guzzlers
Introduction
- In this Analysis, You will read about fees on popular chains. I analyzed Fees on Ethereum, Arbitrum, Optimism, Polygon, Osmosis, Flow, Near, Algorand and Solana.
- I went through these chains and analyzed these parameters:
- Transactions
- Average daily Fees in USD
- Average daily/hourly Fees and transactions per block
- Average daily fees for 1M US dollars transfers
- Total, daily median/max fees in USD
- Top 10 user transactions and Fees
- Top 10 users Max/median/average Fees
Analyzed by Hess - Reading Time Almost 15 min.
Full Analysis
THANK YOU FOR READING!
ALL CODES AND CONTENTS WERE WRITTEN BY HESS.
Ethereum
- Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. Ethereum was conceived in 2013 by programmer Vitalik Buterin
Algorand
- Algorand (ALGO) is both a digital currency and blockchain platform. The Algorand platform is designed to process many transactions quickly, similar to major payment processors like Mastercard or Visa. In addition, Algorand can host other cryptocurrencies and blockchain-based projects, making it a direct competitor to Ethereum. ALGO, the platform's native currency, is used to secure the Algorand blockchain and pay processing fees for Algorand-based transactions
Near
- NEAR is the native token of the NEAR Protocol, a highly scalable blockchain network that provides a developer-friendly, decentralized application platform. NEAR tokens are used to pay network fees and can be staked to enhance network security.
Flow
- Flow is a blockchain platform that originally was designed for gaming purposes, but has expanded since its launch in 2020. The flow blockchain enables fast, low-cost transactions and supports smart contracts. It powers blockchain applications including NBA Top Shot, a non-fungible token (NFT) offering.
Polygon
- Polygon is an Indian blockchain platform. It aims to create a multi-chain blockchain ecosystem compatible with Ethereum. As with Ethereum, it uses a Proof of Stake consensus model. Polygon's native token is named MATIC. Polygon is used by Decentralized application, including DeFi, DAOs, and NFTs.
Optimism
- Optimism is a fast, stable, and scalable L2 blockchain built by Ethereum developers, for Ethereum developers. Built as a minimal extension to existing Ethereum software, Optimism's EVM-equivalent architecture scales your Ethereum apps without surprises.
Arbitrum
- The Arbitrum network is a layer-2 functionality, developed by the New York-based company Offchain Labs, which seeks to solve the congestion that the Ethereum network has been experiencing by improving how smart contracts are validated.
Solana
- Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs
Osmosis
- Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools
Transactions and Fees
- Let’s examine transactions on these chains. Solana has the highest number of transactions in comparison to other chains. In the last 30 days, Nearly 1B transactions were on Solana. This is a huge number and it has a huge difference from other chains. After Solana, Polygon with 80M transactions is the second top chain. With 37M transactions, Algorand is the third top chain. Ethereum and Flow chains had similar transactions in the last 30 days. Both had almost 31-32M transactions in 30 days.
- Among these chains, Osmosis had the lowest number of transactions. Osmosis had only 5.2M transactions. After Osmosis, Optimism with 8.7M transactions and Near with 16M transactions are next places. Arbitrum is between these chains with around 19M transactions in 30 days.
We already, Examined the total transactions on these chains. Now it’s time to examine the total fees per chain.
- All crypto users know that Ethereum has the highest transaction fees in comparison to other chains. In the last 30 days, Users spent nearly 115M US dollars for fees on the Ethereum chain. Ethereum has a huge difference from other chains. We can not compare Ethereum with other chains.
- It is interesting that Solana with a huge number of transactions (Almost 1B) is not a top chain based on transaction fees.
- The polygon chain with 2.4M US dollars is the top second chain in comparison to other chains. After Polygon, I can see other Layer2 chains. Optimism and Arbitrum. These two chains with 1.6M and 1M US dollars are in the next places.
- Flow and Osmosis had the lowest fees in comparison to other chains. We already know that Flow had nearly 30M transactions in the last 30 days.
- After Flow and Osmosis, Near with 65K US dollars had the lowest fees. However, Near and Osmosis had the lowest number of transactions too.
- Overall, Ethereum with around 30M transactions had the highest volume of fees.
With average and median volume, We can understand fees on different chains better. In these three charts, I analyzed the average, Median, and max fees in USD per chain. I should mention that due to the token prices, All parameters decreased over the last 30 days.
Median:
- Ethereum had the highest median fees in comparison to other chains. The daily median fee on Ethereum was 1-2 US dollars.
- The next places are Layer2 chains like Arbitrum, Optimism, and Polygon. Optimism median fees were much higher than Arbitrum and Polygon. The daily median fees on Optimism were 0.8-0.13 while Polygon median fees were 0.005-0.01.
- Flow, Osmosis, and Solana had the lowest daily median fees in comparison to other chains.
Max:
- Max fees were interesting. The highest fee is paid by an Ethereum user. That user paid almost 157K US dollars for a transaction on October 10.
- Almost all chain’s max fees are paid in that time. The highest amount of Fees paid by Optimism users was 453 US dollars.
- We all know that Solana is one of the chains with lower transactions fee. But In November, A user paid 222 US dollars for the Fee!
Average:
- Like the other two parameters, Ethereum had the highest daily average fees in USD. Ethereum users are paid almost 2-7 US dollars for transactions.
- Optimism, Polygon, and Arbitrum had the highest average fee after Ethereum.
- Flow, Algorand, Osmosis, and Solana had the lowest average. Numbers were too low.
- Average Fees on Near didn’t change over time.
\
- I examined the average fees for 1M US dollars transfer. It is interesting because the top chains are Polygon and Optimism. In this parameter, Ethereum is the third chain.
- Polygon and Optimism had too many ups and downs. Users paid 1K and up to 8K for fees in these two chains.
- Arbitrum, Another Layer2 chain, Had the lowest fees in comparision to Optimism, Polygon and Ethereum.
- Near and Solana had the lowest fees in this parameter.
Fees Per block
The average daily number of transactions per block on Solana and Ethereum was higher than on other chains. However, over time, The average number of transactions per Block on Solana increased over time. It is interesting that Arbitrum had the lowest average number of transactions per block. After Arbitrum, Near and Osmosis had the lowest average number of transactions per block in the last 30 days.
-
Ethereum has the highest average fees per block in comparison to other chains. Ethereum has a huge difference from other chains based on average daily fees per block.
-
Ethereum's average fee per block is 360-500 US dollars. The second Top chain was Polygon. Polygon average fees per block were 1-10 US dollars.
-
Optimism and Arbitrum were the next top chains. Optimism and Arbitrum fees per Block were 0.1-0.5 US dollars.
-
All other chains had lower than 1$ fees per block.
-
For a Shor time, in the first days of November, The average fees per block increased.
\
Compare Top 10 Users Per chain
I extracted the Top 10 users based on total paid Fees per chain.
- Ethereum's Top users are on the top list. After Ethereum, Polygon's Top Users paid more than other top 10 users.
- The Top User paid 936K US dollars on Ethereum which was the highest amount of Fees in comparison to other chains.
- It is interesting that a User is in the Top 10 users in two chains. This user paid 27K US dollars on Arbitrum and 66K US dollars on Optimism.
- Flow and Osmosis's Top 10 users paid the lowest amount of fees in comparison to other chains.
- Following those chains, Solana and Algorand's top 10 users are in the next places.
Until November, The average hourly transactions on Solana and Ethereum were similar to each other. However, After that, The average hourly number of transactions on Solana increased.
Polygon and Algorand had similar transactions per block. Some days Polygon was higher than Algorand and Some days Algorand was higher than Polygon. The other two layer2s, Arbitrum, and Optimism had the lowest hourly number of transactions per block.
- The average hourly fees in USD on Ethereum per block had the highest amount. The average hourly fees in USD had so many ups and downs. For example, On Ethereum, The average hourly fee on Ethereum increased by 500 US dollars in one hour.
- After Ethereum, Polygon, Optimism, and Arbitrum were in the next places.
- Like previous parameters, Flow, Osmosis, and Algorand had the lowest hourly fees per block.
Top Users Per Chain
- In order to understand each chain better, I analyzed each chain separately. You will read these parameters for each chain:
- Total Number of transactions
- Total Fees in USD
- Average Fee in USD
- Max Fee in USD
- Total Number of transactions and Fees per Top 10 users based on total Fees
- Max/Median/Average Fees of Top 10 users
PLEASE WAIT … CHARTS ARE LOADING… PLEASE WAIT … CHARTS ARE LOADING… PLEASE WAIT … CHARTS ARE LOADING… PLEASE WAIT … CHARTS ARE LOADING…