Ethereum Fees So High! How Taiwanese Exchanges Are Adjusting USDT and ETH Withdrawal Costs

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The surge in Ethereum's popularity due to booming liquidity mining activities has driven network congestion to new highs. As of recent data, the standard gas price on the Ethereum network has exceeded 400 Gwei, meaning even a simple transfer transaction now costs around $3.60—and that’s for average speed. At peak times, fees can skyrocket even higher, significantly impacting users and exchanges alike.

With Ethereum transaction costs spiking, major cryptocurrency exchanges in Taiwan have had to respond by adjusting their withdrawal fee structures—especially for ERC-20 USDT and ETH withdrawals. This article breaks down how local and international platforms are adapting, what it means for traders, and offers smart alternatives to minimize costs.

Why Are Ethereum Transaction Fees So High?

Ethereum’s network operates on a supply-and-demand model for transaction processing. Every time someone sends tokens, swaps assets on decentralized exchanges (DEXs), or interacts with smart contracts, they must pay a "gas" fee to miners.

When demand surges—such as during liquidity mining booms, NFT mints, or DeFi yield farming rushes—the network becomes congested. Users then bid higher gas prices to get their transactions confirmed faster, pushing average fees up dramatically.

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This is exactly what’s happening now: increased activity from DeFi protocols has caused ERC-20 token transfers, including stablecoins like USDT, to become unexpectedly expensive.

How Major Taiwanese Exchanges Are Responding

To manage rising on-chain costs, exchanges must either absorb the fees (unprofitable at scale) or pass them on to users. Most have chosen the latter.

MAX Exchange

On September 2, MAX adjusted its withdrawal fees effective at 2:00 PM:

This reflects a direct response to high Ethereum base fees, ensuring withdrawals remain reliably processed without delays.

BitoEx (幣託)

Initially taking a wait-and-see approach, BitoEx did not immediately raise fees. Instead, they encouraged users to withdraw TRC-20 USDT—a cheaper alternative running on the Tron network—with a zero-fee promotion until September 13.

However, updates show:

Their flexible strategy shows an effort to balance user experience with operational cost management.

ACE Exchange

ACE announced fee adjustments on September 3:

Like MAX, this change was made to maintain reliable withdrawal processing amid volatile gas prices. However:

These dynamic shifts highlight how rapidly conditions can change on the Ethereum network—and how exchanges must adapt in real time.

International Platforms: A Comparative Look

While local exchanges adjust fees cautiously, global players show varied strategies.

Binance

As one of the most widely used exchanges among Taiwanese users, Binance’s fee structure has drawn attention:

These rates were notably higher than domestic platforms. However:

This makes Binance more competitive again, especially for ETH withdrawals, which are now cheaper than many local options.

FTX

Though less active post-2022 events, FTX previously offered a zero-fee model for most withdrawals—a bold move aimed at user acquisition and retention. While no longer operational in its original form, this policy highlighted how fee strategy can be a key differentiator.

Pionex

Known for grid trading tools popular in Taiwan, Pionex maintains relatively low and stable fees:

These rates align closely with adjusted local exchange pricing, making Pionex an attractive option for cost-conscious traders.

The Shift From Centralized to Decentralized Platforms

High fees aren’t just a user inconvenience—they’re reshaping behavior. Many investors are moving funds off centralized exchanges and directly into decentralized finance (DeFi) platforms, where they can:

However, this shift comes with trade-offs:

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Nonetheless, the trend is clear: rising costs are accelerating adoption of alternative networks and off-ramps from traditional exchange ecosystems.

Core Keywords Naturally Integrated

Throughout this analysis, key themes emerge that reflect current market concerns:

These terms capture search intent around cost management, regional exchange policies, and user strategies during periods of network stress.

Frequently Asked Questions (FAQ)

Why are Ethereum transaction fees so high right now?

Ethereum fees rise when network demand increases—such as during DeFi liquidity mining surges or NFT launches. More users compete for limited block space, driving up gas prices.

Which is cheaper: ERC-20 USDT or TRC-20 USDT withdrawals?

TRC-20 USDT is typically much cheaper—often less than $1—compared to ERC-20, which can exceed $5 during peak times. Many exchanges promote TRC-20 as a cost-saving alternative.

Did all Taiwanese exchanges increase withdrawal fees?

Not permanently. While MAX and ACE temporarily raised fees in early September, some later rolled them back as Ethereum congestion eased. BitoEx used incentives instead, promoting TRC-20 usage.

Is Binance more expensive than local exchanges for USDT withdrawals?

At times, yes. Binance’s ERC-20 USDT withdrawal once reached 15 USDT—higher than local platforms. But as of October 20, fees dropped below 5.86 USDT, making it competitive again.

Can I avoid high Ethereum fees altogether?

Yes. Consider using alternative networks like Tron (TRC-20), BNB Chain, or Layer 2 solutions like Arbitrum or Optimism. These offer faster, cheaper transfers while still supporting USDT and other major tokens.

What should I do when gas fees are too high?

Wait for lower congestion periods (often nights or weekends), use gas-tracking tools like ETH Gas Station, or switch to a more efficient network like Tron or Polygon for stablecoin transfers.

Final Thoughts: Smart Strategies for Cost-Efficient Transfers

As Ethereum continues to evolve—especially with ongoing upgrades toward scalability and lower fees—users must stay informed and flexible. Temporary fee spikes may become less frequent, but they’ll never disappear entirely due to the decentralized nature of blockchain economics.

For Taiwanese traders, the lesson is clear: compare withdrawal methods across exchanges, consider non-Ethereum networks like Tron for stablecoins, and monitor real-time gas conditions before initiating any transaction.

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By adopting smarter transfer habits and leveraging modern infrastructure, you can navigate high-cost environments confidently—and keep more of your crypto where it belongs: in your wallet.