How much is Solana’s gas fee?

So we will try to answer the following: What are Solana's fees? We will also compare Solana to Ethereum fees and see how they might change in the future.

As of May 2023, according to Solscan, the Solana transaction fee varies between $0.0001 to $0.00030 per transaction, but it will change over time. These fees are driven by competition for blockchain storage space, which is increasing as traffic on blockchains increases. Compared to Ethereum, Solana's fees are 60,000 times lower. This is due to Solana's high scalability compared to Ethereum. As Solana becomes more scalable, the fees will be even lower in the future.

What are the fees for Solana?

Solana is actually 60,000 times cheaper than Ethereum. In other words, Solana has very low costs and is much cheaper than Ethereum. Take a look at this comparison from Beincrypto.

Why is Solana so much cheaper?

The main reason is that Solana is more scalable than Ethereum. This essentially means that more transactions can fit into each block, and so each transaction costs less. In the future, as Solana becomes even more scalable, the fees will be even lower.

Does this mean that Ethereum is dead? Does this mean that Ethereum's value is less than 60 million? But as we are all aware, things can change quickly in the cryptocurrency world. The price of Ethereum has been on a constant rise since the beginning of 2019. With smart investing strategies, you can make incredible returns by trading this cryptocurrency despite what some people may say about its current trend in 2022 being a "Bear Market." 

How trading fees are determined and why they change over time:

The main reason for the cost increase is the excessive number of transactions is too short a period of time. In other words, it is a problem of scale.

If a blockchain is capable of 10 transactions per second (TPS), and 5,000 people try to make a transaction in the same second, costs will skyrocket due to increased competition for "block space."

When you send someone a cryptocurrency, the transaction must be stored in a "block." This block is essentially a collection of transactions.

After a certain period of time, which depends on the blockchain used to process the transactions, the block is added to the chain. The chain is essentially a database or public ledger where all transactions are recorded.

Once the block containing your transaction is added to the chain, the transaction is complete.

The problem is that a block can only contain a limited number of transactions!

When a block is full, you have to wait for it to be added to the chain and hope that there is room for you in the next block.

Okay, but who decides which transactions are included in the block?

Who pays the highest transaction fee!

The cost to be included in the next block that completes your transaction is called a "transaction fee."

Thus, the transaction cost is determined by two factors: the time it takes to create new blocks and the number of transactions that are added to the block.

If blocks are created frequently and each block can accommodate a larger number of transactions, competition for space in the block is reduced, resulting in lower transaction costs.

What is Blockchain Technology?

Solana could theoretically grow to 50 000 TPS without much difficulty (Source: bitcoin.com).

Solana also claims that it can double its scalability exponentially every two years and as processors and other technologies improve.

If Solana maintains its scale, costs will remain as low as they are now. If competition in the blockchain sector continues to decrease, it may even decrease.

In the case of Ethereum, it is not surprising that costs are rising rapidly with increasing use. The scale of the Ethereum m-blockchain is enormous and is causing a lot of competition in the blockchain sector.

However, this will change with ETH 2.0. ETH 2.0 will eventually enable millions of transactions per second on the Ethereum blockchain, allowing for lower fees and significantly faster transactions. However, lowering the fees could take a couple of years post merge.

In summary, Solana's fees are currently about 60,000 times lower than Ethereum's fees because they are much more scalable and the traffic is lower. However, when Ethereum 2.0 is released, the rates will be more or less the same: both will be extremely low.

If you invest in traditional markets such as stocks and bonds, there is very little you can do to significantly increase your return on investment. This is not the case for cryptocurrency markets.