why the erc-20 network is expensive

The cost of transactions on the Ethereum network, including those involving ERC-20 tokens, can vary based on several factors. As of my last knowledge update in January 2022, here are some reasons why the Ethereum network might be expensive: 1. **Network Congestion:** Ethereum has a limited transaction processing capacity. When there is a high demand for transactions, the network can become congested, leading to an increase in transaction fees as users compete to have their transactions processed quickly. 2. **Gas Fees:** Ethereum uses a fee mechanism called "gas" to prioritize and process transactions. Gas fees are paid in Ether (ETH) and vary based on the computational complexity and storage requirements of a transaction. ERC-20 token transactions often require more gas than simple ETH transfers, contributing to higher fees. 3. **DeFi and NFT Activity:** The popularity of decentralized finance (DeFi) applications and non-fungible tokens (NFTs) has increased the overall demand for Ethereum transactions. These activities often involve complex smart contract executions, contributing to network congestion and higher fees. 4. **Scalability Challenges:** Ethereum has been working on transitioning to Ethereum 2.0, a major upgrade intended to improve scalability and reduce transaction fees. However, as of my last update, this transition was still in progress, and Ethereum faced scalability challenges. 5. **Limited Block Size:** Ethereum blocks have a size limit, and each block can only contain a certain number of transactions. When the network experiences high demand, transactions may need to compete for limited space in blocks, leading to higher fees. It's worth noting that the Ethereum ecosystem is dynamic, and developments may have occurred since my last update in January 2022. If you are experiencing high fees or are interested in the current state of the Ethereum network, it's recommended to check the latest information and updates from official sources or community channels.