If you have recently been executing Smart Contracts or performing transactions, you would most likely notice the unusually high gas fees. Why is this happening?
To understand why this happens, you first must understand how gas fees function.
Ethereum Gas is a unit that measures the amount of computational effort that it will take to execute certain operations. Every single operation that takes part in Ethereum, be it a transaction or smart contract execution requires some amount of gas.
This alone shouldn't be a problem, because when the network is not under a lot of stress, transactions cost a barely noticeable fee. Times like now, when the network has heavy traffic, things are a lot more expensive. This chart below shows the average gas price, that tiny blue line rising at the end of the chart is us right now.
To compare, in January 2020, average Gas fee was around 10-15 Gwei (10 Gwei = 0.00000001 ETH), currently it is around 250 Gwei. That is more than 20 times higher, which increases the costs quite a bit.
If you are curious about the current gas price, ETH Gas Station is the place where you will find the most recent Gas prices.