We have seen an incredible rise in popularity of decentralized finance projects, and with that rise has been an increase in gas fees. Many first-time sellers and buyers have seen a loss in their profit margin or even a total loss. There are reports of buyers losing over $200 in gas fees from the purchase of an NFT worth just $30 in Ether.

Before we dive any deeper, we must understand exactly what gas fees are. In addition, it is important to understand what exactly determines their overall price.

What Are Gas Fees?

Every single transaction on the blockchain will be processed and validated by miners who use incredibly powerful systems as well as large amounts of electricity. The computational effort that is required for this process is referred to as “gas”.

In order to carry out various computations, minors will need to pay gas fees, which can literally cost hundreds of dollars. In essence, a gas fee serves as an incentive of sorts to the miners as well as a reduction of spam on the network.

The vast majority of NFT marketplaces ensure that a user pays a gas fee for the purchase or sale of any NFT. The amount of the fee will be dependent upon a number of variations as well as the type of computations that will be required to verify the transaction. In the case of more complex computations, one can expect a much higher gas fee.

In regards to the Ethereum network, an individual will need to determine their specific “gas limit”, which is the maximum amount of gas you are willing to pay per transaction. Additionally, the gas price is the specific amount you will pay for each unit of gas. In its simplest form one can remember this equation, the gas limit X gas price = gas fee.

The actual price of gas will continue to fluctuate as it is dependent on numerous factors such as the amount of traffic on the network. The amount that you decide to set as a gas limit will determine how quickly your transaction will be able to be processed. If the amount is set to low, the vast amount of miners are going to prioritize other transactions that offer higher gas fees.

How to Avoid Large NFT Gas Fees

While it is impossible to avoid all gas fees on the vast majority of blocked chains, it is possible to reduce the amount you pay. Let’s take a look at a few of the options available to you.

– Planning Ahead

Gas prices will typically fluctuate due to the overall network activity, understanding traffic variations is the best way to pay a lower fee on gas. Transactions will typically peek on specific times and days, in which the transaction rates will be higher.

One report states that Ethereum gas prices are generally the lowest on Saturdays and Sundays. Whereas they tend to be higher on Tuesdays and Thursdays, when the network is generally at its busiest. If your transaction is not that urgent, you are better to wait for a slower time on the network.

There are a number of free analysis tools that will allow you to better understand the general state of the blockchain at specific times. One such tool is GasNow, which will allow you to determine if the gas price is higher than expected at any given time. Ethereum Price is another tool that will show the weeklong activity on the network as well as NFT gas station which offers an in-depth analysis across various marketplaces.

In hindsight, depending upon the urgency of your specific transaction it is possible to reduce the number of fees you pay. It is important that you check and recheck current market prices, seek out network congestion, calculate your general gas fees, and plan in advance as much as possible.

– Adopt Layer 2 and Sidechain Solutions

In recent months, there have been several Ethereum sidechain platforms and Layer 2 solutions that have been able to sidestep several limitations of Ethereum. These are basically separate blockchains that have been built on the Ethereum network, however, they are faster and cheaper.

One such protocol is Polygon, which is been able to attract the attention of multiple projects, especially blockchain game developers. Polygon is completely compatible with Ethereum and offers low-cost transactions that are equally as fast.

Will the industry is awaiting the development of Ethereum 2.0, one may choose to switch to another framework such as Polygon or LOOM for the time being. In addition to low crypto gas fees, they also feature the full security of the Ethereum network.

– Combine Multiple Transactions

Another incredibly easy way to save on gas is through the combination of related transactions. This is due to the fact that the amount of gas will vary depending upon the type of transaction that is processed.

Let’s take a look at a simple example: Imagine that you have multiple coats that have various addresses – address a and mattress b – and would like to send all of your tokens to address c. If you are to transfer all of these tokens in separate transactions, you would be forced to pay the gas price twice. However, if you were to transfer the tokens from A to B and then B to all C you only pay half of the gas price.

– Choosing a Block Chain with Little to No NFT Gas Fees

The Ethereum block train has become well established as the premier network for De-fi projects and tokens. With this in mind, it is understandable how activity on this particular blockchain is higher which results in higher gas fees as opposed to other blockchains. As you can see, it is generally a good idea to find another blockchain in an effort to lower your overall gas expenses.

Before you decide to switch, it is important to weigh the various pros and cons. While the vast majority of secondary blockchains do offer lower transaction fees, deciding to leave Ethereum can possess several hurdles when planning to use a third-party service. Additionally, Ethereum is as reliable as they come, as it has been around for a number of years.

Some of the more popular alternatives that are available include EOS, Smart Chain, and Tezos. These are all proven to be reliable in supporting smart contracts. Tezos, for example, offers a low carbon footprint as well as guest-list transactions, making it an excellent substitution. Additionally, it is possible to use the same wallet you used on Ethereum with Tezos.

Whereas, the WAX blockchain has been able to establish itself as one of the leading decentralized networks for gaming and entertainment. It has become home to the highly popular NFT marketplace known as Atomic Hub, which predominantly features Capcom’s Street Fighter and Blockchain Heroes.

– Using Gas Tokens

Guest tokens enable you to tokenize gas. What foods are ready but I’m in the middle of something I’m in the middle of something I was in the middle of some This will allow you to mend gas tokens while gas prices are at their lowest and redeem them when they are at their highest. When you redeem a gas token, you are refunded in ETH, which allows you to pay for any gas expenses that may occur.

You can consider that a gas token will use the Ethereum storage refund system. In this case, the user will be incentivized for deleting any storage variables. One of the more popular gas token projects is known as GasToken.io.

GasToken works in a very simple way: when the gas prices are low human to token for the saving of data in the contract storage. As gas prices rise, you can use the tokens by sending them to the GasToken contract. It is here that they will be destroyed and you will receive a refund for the fresh transaction.

However, one should understand that a gas token is not the most ideal solution for the reduction of gas fees. In truth, they actually clog the Ethereum state size and there are plans underway to nullify the refund system.

Final Thoughts

As we see more individuals embrace the thought of NFTs, high gas fees may very well be a major setback for such blockchains as Ethereum. Sellers and buyers alike would prefer a platform that offers high scalability and low gas fees. With this in mind, it is brought about new projects and plans in an effort to reduce gas fees.