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Ethereum fees skyrocket by 70%

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Ethereum Q&A: Skyrocketing Network Fees, what can we do?

Ethereum fees skyrocket by 70%

Ethereum fees skyrocket by 70%
CONTENT

  • Ethereum transaction fees jump to $ 4.5510 September

  • The average commission is over two dollars for over a month

  • DeFi Market Activity Continues to Fuel Growth in Online Fees

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After briefly falling from historic highs, transaction fees on the Ethereum network resumed their growth, breaking the previous record thanks to the activity in the decentralized finance market..

Ethereum fees skyrocket by 70%

Even after the sharp drop in the ETH rate earlier this month, fees on the Ethereum network continued to rise and showed only a short-term decline..

Average transaction fees on Ethereum have exceeded two dollars for a full month since August 10, a new record on the network.

On September 2, the average commission was $ 14.58, and on September 9, it dropped to $ 2.67. Fees are now rising again amid ongoing hype around the DeFi market.

Ethereum (as well as Bitcoin and other cryptocurrencies) fees are determined by the level of activity on the network. Blockchain transactions are processed by miners with limited computing power. Miners add computing power in the form of higher rewards while theoretically reducing the number of transactions streamed by users who do not want to increase their fees.

Transaction fees on the Ethereum network from September 8 to 10 increased by 70%, to the level of $ 4.55, while the ETH rate itself increased by only 4% over this period, reaching $ 363.36.

Prior to that, the average commission on the Ethereum network was held for a long time above two dollars only twice. It was at the beginning of 2018 – from January 5 to January 15, the commissions exceeded this threshold, and also in the summer of the same year – from July 1 to July 7, the commission size was kept above the two-dollar mark..

Transaction volumes are now so high that average daily commissions have not dropped below $ 2 since August 10. And, judging by the recent reversal after the fall, the upward trend will develop.

Ethereum fees skyrocket by 70%

 

The continued growth in activity is fueled by DeFi applicationsDecentralized Finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient, and … More sites. The recent DeFi activity on Ethereum has been so high that economic activity, as measured by the volume of tokens moving on the network, has exceeded Bitcoin activity for the first time in several years..

Ethereum has bounced off recent highs, but increased network activity shows that the hype around DeFi projects hasn’t begun to fade..

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