Ethereum fees rise by 70% to continue record-breaking streak

In short

  • The average transaction fee on Ethereum rose to $ 4.55 on September 10, a 70% jump two days earlier.
  • Average fees have been above two dollars for more than a month, a running-breaking streak.
  • DeFi activity is driving enhanced network activity and resulting fees.

Even though prices settle after a massive crash at the beginning of the month, Ethereum fees have risen for a record-breaking stretch.

Ethereum transaction fees paid for ETH transfers or transmissions to broadcast smart contracts on the Ethereum network remain above the average of two dollars for a full month, starting on August 10 – anyone above that level Even compared to the previous run, Data from BitInfoCharts.

During that time, the average transaction fee exceeded $ 14.58 on 2 September. 9. before dropping to $ 2.67 on September. Now fees are rising again, a sign that activity on the network is happening again, and away from the defi-mania. up.

The fees for Ethereum (and also Bitcoin and other cryptocurrencies) are determined by network activity. Blockchain transactions are processed by miners with limited capacity. Miners can manage comfortably when the transaction is being transmitted, Transaction fees increase.

This gives an incentive for miners to add more processing capacity in the form of high fee rewards, while theoretically reducing the number of transactions being transmitted from users as well as unwilling to pay higher fee costs .

Ethereum transaction fees increased 70% on average between September 8 and September 10 to $ 4.55. Ethereum prices also increased during that period, but by only 4%, to $ 363.36.

The average transaction fee at Ethereum has been above the first two dollars only twice according to BitInfoCharts. For the first time, in early 2018, Ethereum fees remained above that threshold for just 10 days from 5 January to 15 January. The second occasion came during the summer of 2018, when Ethereum’s fees were above two dollars for seven days from July 1. 7 July.

Now, the transaction volume is such that the average daily fee has not had a chance to dip below two dollars since August 10 and is set to continue the streak, with the fees reversed before September 8.

Continued strong activity is used by DeFi applications to draw in billions by drawing loans and providing liquidity for token swaps on decentralized exchanges. Recent DeFi activity on Ethereum is such a strong, economic activity measured by the value of tokens across the network Overtook bitcoin for the first time in years.

Ethereum prices may be lower than recent peaks, but fee activity on the network is indicating excitement and the money flowing into DeFi projects is yet to be exhausted.