Engaging in cryptocurrency transactions, whether trading or transferring assets, can sometimes lead to unexpected failures. Understanding why these failures occur is crucial for any user navigating the decentralized finance (DeFi) space. This guide covers the typical reasons behind failed transactions and offers actionable solutions to address them.
What Leads to a Failed Transaction?
Several factors can cause a crypto transaction not to go through. Below are the most common scenarios.
Network Congestion and Low Gas Fees
Blockchain networks like Ethereum can experience high traffic, leading to congestion. During these periods, the cost of gas fees—which are payments users make to compensate for the computing energy required to process transactions—can rise sharply. If the gas fee you allocated is too low, miners or validators may prioritize other transactions, causing yours to fail.
Incorrect Slippage Tolerance Settings
Slippage refers to the difference between the expected price of a trade and the price at which it actually executes. Some tokens, particularly those traded on decentralized exchanges (DEXs), require a minimum slippage tolerance. If you set a slippage lower than required (for instance, 1% when the token demands 3%), the transaction will not proceed.
Lack of Market Liquidity
In highly volatile markets, liquidity can change rapidly. If the available liquidity is insufficient to fulfill your trade at the specified amount, and the quantity falls below the minimum required by the smart contract, the transaction will be stopped automatically.
Insufficient Balance for Multiple Transactions
If you initiate several identical transactions in quick succession but only have enough funds to cover the first one, the subsequent transactions will fail due to a lack of balance.
How to Accelerate a Pending Transaction
Transactions on Ethereum or other EVM-compatible networks might get stuck if the network fee offered is too low. Since miners prioritize higher-paying transactions, a low gas fee can lead to significant delays.
To speed up a transaction, you can adjust the gas fee to a higher tier. Many wallets and trading platforms allow users to modify network fees even after a transaction is initiated. Increasing the gas price (measured in Gwei) from a slow to an average or fast tier can help get your transaction processed quicker. Alternatively, you can choose to wait until network congestion eases and gas fees drop.
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Are Network Fees Charged for Failed Transactions?
Yes. Whether a transaction succeeds or fails, you are required to pay the network fee. That’s because miners or validators still expend computational resources to attempt to process your transaction. This fee is not collected by your wallet provider or exchange but is instead paid to the network participants. Therefore, it is non-refundable.
To avoid unnecessary expenses, avoid setting overly low gas fees. A failed transaction not only costs you but may also require an additional fee to cancel or replace the stuck transaction, making it more costly in the long run.
How to Check the Price of Tokens You've Purchased
Most modern crypto wallets and exchange apps include portfolio tracking features. You can typically review your transaction history, including token prices, within the app. For example, in many platforms, you can navigate to the Web3 wallet section, select “Transaction History,” and tap on a specific transaction to see details such as the amount sent, the amount received, and the network fee paid.
Why Some Tokens Require High Slippage Settings
Certain tokens are designed with mechanisms that involve redistributing a portion of each transaction to liquidity pools, token burns, or holder rewards. Tokens like SAFEMOON often require higher slippage tolerance to account for these features. To improve user experience, some DEXs now offer automated slippage adjustments that optimize the slippage setting to improve the chances of transaction success.
Frequently Asked Questions
Why did my Ethereum transaction fail even though I paid a gas fee?
Even if a transaction fails, the network still consumes resources to process it. Therefore, gas fees are non-refundable. Failure often occurs due to low gas fees during network congestion, insufficient slippage tolerance, or lack of liquidity.
How can I avoid failed transactions in the future?
Always check network congestion levels before transacting. Use recommended gas fee settings and adjust slippage tolerance according to token requirements. Also, ensure you have enough balance to cover the entire transaction plus fees.
What should I do if my transaction is stuck?
You can usually accelerate it by increasing the gas fee via your wallet’s transaction history menu. Alternatively, some platforms allow you to cancel or replace the stuck transaction by issuing a new one with a higher fee.
Is it safe to increase slippage tolerance to complete a trade?
While increasing slippage can help complete a trade, especially for tokens with built-in transaction taxes, be cautious. Very high slippage might result in a less favorable exchange rate. Use automated tools or research the token’s typical slippage requirements beforehand.
Do all blockchains require gas fees?
Most proof-of-work and proof-of-stake blockchains require some form of transaction fee. However, the structure and cost of these fees vary by network.
Can I recover funds from a failed transaction?
Since the network fee is spent regardless of outcome, you cannot recover it. However, the principal amount of a failed trade or transfer typically remains in your wallet.