As observed, Ethereum average gas fees went from $1.5 on October 15, registered by BitInfoCharts, to the last recorded average of $6.35 on November 17. Notably, users paid $6.9 million in ETH gas fees on a single day, according to data from CryptoQuant.
In the past, these high-fee scenarios have driven demand and liquidity toward alternative layer-1 blockchain with a similar proposition to Ethereum and lower gas fees. With that in mind, Finbold turned once again to ChatGPT to get insights into possible good picks for this context.
BNB Chain (BNB)
ChatGPT’s first pick was the BNB Chain (BNB) a layer-1 blockchain created by the cryptocurrency exchange Binance. Interestingly, BNB’s price is up 14.66% in the last month, since Ethereum gas fees started increasing. At the time of publication, Binance’s native token is trading at $242.13.
“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 for transaction fees and participate in various decentralized applications (DApps). Binance Smart Chain’s architecture prioritizes high throughput and low fees, making it an attractive option for users seeking alternatives to Ethereum.”— ChatGPT
Notably, Solana (SOL) was one of the best-performing cryptocurrencies of the year and is ChatGPT’s second pick for more efficient gas fees. Its native token, SOL, is trading at $56.13 by press time, with fantastic monthly gains of 136%.
“Solana has gained attention for its high throughput and low transaction costs. It uses a unique consensus mechanism called Proof of History (PoH) to improve 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 (DEXs) that leverage its performance advantages over Ethereum.”— ChatGPT
Meanwhile, Cardano (ADA), ChatGPT’s third pick, is the second-best performer among the three low-fee “Ethereum killers.” The native token ADA is priced at $0.36 with 46% gains in the last 30 days.
Nevertheless, it is important to say that other factors, such as security, scalability, decentralization, and adoption, must be considered when evaluating each of these mentioned projects.
There are no guarantees that any of these layer-1 blockchains will be able to conquer any meaningful share of Ethereum’s capitalization and total value locked on DeFi, despite offering a more efficient alternative for gas fees and network scalability.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.