Transaction fee pressure describes the upward force on the cost of sending transactions on a blockchain network, typically caused by high demand for block space exceeding the network’s processing capacity. When many users compete to have their transactions included quickly, they offer higher fees to incentivize miners or validators. This pressure results in increased costs for network participants. It is a direct consequence of network congestion.
Context
Transaction fee pressure is a frequent topic in crypto news, particularly during periods of high network activity on popular blockchains like Ethereum. It often leads to discussions about network scalability, layer-2 solutions, and alternative protocols that offer lower transaction costs. High fee pressure can impede user adoption and limit the utility of decentralized applications.
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