Exploring Safe by Palmera: Analysis of Fees by Chain
Welcome to the eleventh installment of our bi-weekly series, “Exploring Safe by Palmera.” In previous articles, we’ve provided insights into key trends in the Safe ecosystem. In this edition, we delve into the analysis of transaction fees across different chains, a crucial factor affecting the secure management of digital assets through Safe Smart Accounts.
Analysis of Fees by Chain
Accumulated Value of Fees Paid by Chain
Our analysis from January 2021 to June 2024 reveals several key trends:
- Steady Increase in Ethereum: Ethereum exhibits a consistent upward trend in accumulated fees, reinforcing its dominant market position.
- Growth in Optimism: Notable increases in accumulated fees since October 2023 indicate Optimism’s growing popularity and use. It now leads in the number of Safes created and transactions executed.
Total Weekly Fees Paid in Dollars by Chain
Examining weekly fees from January 2021 to June 2024, we observe:
- Significant Increases in Ethereum: Ethereum shows notable peaks, particularly in late 2021, early 2022, and early 2024, corresponding with high network activity.
- Recent Growth in Optimism: Since August 2023, Optimism’s share of total fees has increased significantly, reflecting its rising adoption.
- Base and Arbitrum: These blockchains also show recent increases, although to a lesser extent compared to Ethereum and Optimism.
Percentage of Weekly Fees Paid by Chain
The distribution of weekly fees highlights:
- Ethereum Dominance: Ethereum dominated fee percentages until mid-2023 when competitors like Optimism began gaining ground.
- Recent Diversification: From mid-2023 onwards, there is noticeable diversification in fees paid, with increased contributions from Optimism, Arbitrum, and Base.
Total Dollar Value of Fees Paid by Cain
The total fees paid on each blockchain are as follows:
- Ethereum: $46,693,900.20 (81.4% of the total)
- Optimism: $9,909,117.51 (17.3% of the total)
- Arbitrum: $450,052.27
- Base: $78,874.97
- Polygon: $256,177.67
- Gnosis: $1,438.97
Ethereum clearly dominates, followed by Optimism, with other blockchains starting to contribute significantly.
Average Fees per Transaction per Day by Chain
The average fees per transaction per day reveal:
- High Costs on Ethereum: Ethereum shows high peaks in average transaction fees, especially during network congestion.
- Lower Costs on Other Blockchains: Blockchains like Optimism, Base, and Arbitrum offer lower and more stable transaction costs, attracting users seeking cost efficiency.
Historical Average Fees per Transaction
The historical average fees per transaction highlight the differences across chains:
- Arbitrum: $0.43
- Base: $0.28
- Ethereum: $23.12
- Gnosis: $0.0004
- Optimism: $0.20
- Polygon: $0.03
These values illustrate the significant cost disparities, with Ethereum being the most expensive and Gnosis the least.
Our analysis underscores the importance of selecting the appropriate chain based on specific user needs. While Ethereum dominates in total fees paid, other chains like Optimism and Arbitrum are gaining traction due to their lower transaction costs. This trend suggests a growing diversification and the need for users and developers to consider cost efficiency when managing digital assets through Safe Smart Accounts.
Stay tuned for more insights and analyses in our next “Exploring Safe by Palmera” article as we continue to exploring key aspects of the blockchain ecosystem.
About Palmera
Palmera offers a unified platform for managing multiple Safes across these diverse chains. By signing up for the Palmera App and creating your first Dashboard, you gain visibility and control over all of your Safes in one place. We invite you to follow us, and join our channel on Warpcast to stay updated with the latest insights and developments.
Analysis and insights provided by Palmera’s Data Scientist, Marco Tulio.
Disclaimer: This article is intended for informational purposes only. Readers should conduct their own research and due diligence. The information presented does not constitute financial, legal, or investment advice, nor does it reflect the current or future market performance of any specific blockchain network or digital asset.
