🆕 Ethereum Transfer Speed and 5 Ways To Speed Up ETH Transactions

If you’re sending Ethereum to another wallet then you should know how long it will take. 

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Key Takeaways:

• On average, Ethereum transactions can take between 1 and 30 minutes to complete.
• Network congestion and gas fees are two of the biggest factors that influence transaction times.
• Avoiding peak times and increasing gas fees are the most effective ways to help your ETH transaction be faster.

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The Speed of Ethereum Transactions

The Ethereum blockchain can process 13 to 15 Transactions Per Second (TPS), a well-known figure in the cryptocurrency industry. However, this figure does not accurately represent the time required to complete a wallet-to-wallet or wallet-to-exchange transaction on the blockchain. Depending on the transfer method and a variety of other factors, ETH transfers can take 1 minute to 30 minutes to complete.

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From One Wallet To Another

When transferring ETH between wallets, the transfer time can vary depending on the type of Ethereum wallet used. Transactions from a hot wallet connected to the internet are generally faster than those from a cold wallet, which requires connection and unlocking before completing transactions.

Once both types of wallets are connected to the internet, the average wallet-to-wallet Ethereum transaction typically takes between 1 and 15 minutes, depending on the network's congestion. 

Most cryptocurrency wallets do not require many confirmations before assets are transferred. While Ethereum's transfer speed is not as fast as that of other networks like XRP and Solana, it still boasts one of the fastest average transfer speeds. But in most cases, it’s faster than the speeds to transfer Bitcoin which can take up to 60 minutes to complete!

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From A Wallet To A Crypto Exchange

When sending Ethereum from your wallet to an exchange, be aware that the transfer speed may be slightly longer than when sending it from a wallet. This process requires a certain number of confirmations on the blockchain, which can take anywhere from 5 to 30 minutes. 

While the increased number of confirmations enhances security, it can result in longer transfer times. This is a worthy trade-off.

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10 Factors That Influence Ethereum Transaction Speeds

Ethereum transaction times can vary based on network congestion, gas fees, and priority settings. Understanding these factors can help predict transaction speeds and make informed decisions on the network.

1. Network congestion is key

The Ethereum network is capable of processing only a limited number of transactions. 

When a large number of users attempt to make transactions at the same time, the network can become congested. During times of high demand, such as when a popular decentralized application (dApp) is being utilized, transaction processing times can see significant increases. This is due to a backlog of transactions awaiting processing.

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2. Gas fees can entice miners

Gas is the compensation paid to miners for verifying and processing transactions on the Ethereum blockchain. The Ethereum gas fee represents the cost a user is willing to pay for each unit of gas, measured in gwei, an ETH denomination. When users offer higher gas prices, miners give their transactions priority, resulting in quicker processing. 

However, if the gas price is too low, the transaction might experience delays or even be excluded from the network during periods of high congestion. This same principal also applies to BTC.

(Note: When transferring from an exchange, ETH gas fees are not adjustable, as the exchange sets the gas fee on your behalf.)

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3. Gas limit

The gas limit represents the highest amount of gas a user is ready to use for a transaction. This limit dictates the computational work required for the transaction. If a transaction has an inadequate gas limit, it may not be able to be completed as it lacks sufficient gas. 

While the gas limit does not directly impact transaction speed, setting it correctly helps ensure efficient transaction processing.

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4. Block time

The average time it takes for a new block to be added to the Ethereum blockchain is known as block time, which is usually around 12-15 seconds. This block time determines the baseline speed for transaction confirmations. 

Changes in network conditions or consensus mechanisms can cause fluctuations in block time, consequently impacting transaction times.

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5. Miner behavior

Miners have the discretion to select which transactions to incorporate in the upcoming block, considering the gas price and their complexity. Transactions with higher fees or those originating from preferred pools may receive priority processing. 

Furthermore, miners may prioritize transactions from specific dApps or services based on agreements or incentives.

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6. Transaction complexity

Transactions become more complex when using smart contracts, performing multiple operations, or dealing with high computational requirements. These complex transactions require more gas and take processing longer, particularly when the network is congested. 

Generally, simple ETH transfers are faster compared to interactions with decentralized applications (dApps) or token exchanges.

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7. Network upgrades and forks

Transaction times may be temporarily affected during network upgrades such as hard forks or protocol changes. Processing of transactions could slow down during and immediately after upgrades as a result of changes in the network's rules or miners adjusting their operations.

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8. External factors beyond control

With similar affects to network congestion, factors external to the Ethereum network, such as market fluctuations and high-volume trading, can impact transaction processing times. When exchanges experience high trading volumes or significant market fluctuations, this can increase network activity, leading to congestion and slower transaction processing.

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9. Pending transactions

The number of unconfirmed transactions waiting to be included in a block can indicate network congestion. A high number of pending transactions can lead to longer wait times for processing new transactions.

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10. Transaction size

When processing transactions, the amount of data involved is a crucial factor. Larger transactions occupy more space within a block, and during periods when a block is close to reaching its size limit, these larger transactions may be given lower priority. As a result, they may experience slower confirmation times.

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Try These Tips To Hasten Your Ethereum Transaction

1. Increase the gas fee (simplest solution)

Increasing the gas fee is the most effective method to accelerate an Ethereum transaction. 

Miners tend to prioritize transactions with higher gas prices, which allows them to earn more from processing. By setting a higher gas price, your transaction is more likely to be included in the next block. 

Many wallets and platforms offer recommendations for gas prices based on current network conditions. Unfortunately, Ethereum isn’t one of the cheapest cryptos to send which 

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2. Set a higher gas limit

The gas limit doesn't have a direct impact on transaction speed, but it guarantees that your transaction receives enough gas to execute all required operations. 

This is especially useful when dealing with complex transactions, such as interactions with smart contracts, where setting a higher gas limit prevents the transaction from running out of gas. This is especially crucial for transactions involving decentralized applications (dApps) or token exchanges.

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3. Use a transaction accelerator

Some providers offer transaction acceleration services by prioritizing your transaction with miners. You may need to pay a small fee or increase your gas price to enhance the likelihood of your transaction being included in the next block. 

Certain mining pools and wallets, such as SparkPool and Ethermine, provide acceleration services where you can submit your transaction hash for quicker processing.

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4. Avoid peak network times

The Ethereum network experiences fluctuating levels of congestion at different times of the day. To minimize the risk of delays in transaction processing, it is advisable to avoid peak times when the network is most active, such as during major market fluctuations or the release of popular decentralized applications (dApps). 

Sending transactions during off-peak hours can decrease competition for block space, potentially leading to faster processing even at a lower gas price.

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5. Layer 2 solutions will work

Layer 2 solutions such as Optimism, Arbitrum, and zkSync handle transactions off the main Ethereum chain, providing quicker and more cost-effective transactions. 

These solutions process transactions off-chain and then finalize the state on Ethereum, reducing the burden on the main network and accelerating transaction speeds. They are particularly valuable for frequent or high-quantity transactions, such as trading or engaging with decentralized finance (DeFi) applications.

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BONUS:‍

Transacting on the Ethereum blockchain with other tokens/coins (ERC20), such as USDT and USDC, generally follows the same transfer time rules. A fee, typically denominated in ETH, is required when moving ERC20 tokens from a personal wallet. However, if transferring from a wallet on an exchange, the fees might be denominated in the token itself, meaning you could pay fees in USDT or USDC, for example. While ERC20 tokens usually have similar transfer speeds and fees as ETH, transactions from exchanges might experience slight delays.

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