Ethereum

Aave

bullish

when

Ethereum network transaction fees have risen significantly over the last two weeks following a surge in onchain activity, according to Coinbase.
Coinbase’s weekly report, <a data-ct-non-breakable="null" href="https://www.coinbase.com/es-la/institutional/research-insights/research/weekly-market-commentary/weekly-2024-09-27" rel="noopener noreferrer nofollow" target="null" text="null" title="null">published</a> on Sept. 27, notes that the average <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-median-gas-fees-five-year-low#:~:text=Ethereum's%20median%20gas%20fees%20fell,fee%20tracking%20data%20for%20Aug." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ethereum gas fees</a> between Sept. 16 and Sept. 26 were 498% higher than the monthly average, with the median transaction cost rising from $0.09 at the beginning of the month to $1.69.&nbsp;
<figure><img alt="Ethereum gas fees rose 498% in two weeks as network activity surged — Report" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01924430-3d91-7087-a896-3fd75cf4ad0a">
 <figcaption style="text-align: center;">
 Ethereum transaction fees and ETH transfer volumes
 </figcaption>
</figure>
Coinbase analysts David Duong and David Han said that the spike in transaction fees was due to a surge in onchain activity on <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-ethereum-a-beginners-guide-to-eth-cryptocurrency#:~:text=Ethereum%20definition&amp;text=cryptocurrency%20next%20to%20Bitcoin%20everywhere,goals%2C%20features%20and%20even%20technology." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ethereum</a>.
“There has been no single driver of increased activity,” the analysts said, highlighting several contributing factors, including Ethereum decentralized exchange (DEX) volumes which have increased slightly, up 9% week-on-week.
<blockquote>
 “USDC deposit rates on lending platform Aave have also moderately increased from 3.5% to 4.5%, suggesting a slight increase in leverage.”
</blockquote>
Additionally, total Ether transfer volumes have risen by 17% week-on-week, corresponding with higher transaction fees, the analysts added.
Increasing onchain activity is evident in upticks in gas fees, which,&nbsp;<a data-ct-non-breakable="null" href="https://x.com/gashawkio/status/1839700093319917771" rel="noopener noreferrer nofollow" target="null" text="null" title="null">according</a>&nbsp;to blockchain efficiency firm Gashawk, has spiked to 40 gwei several times over the last week.
<blockquote>
 “ETH Gas has spiked above 30-40 gwei and then back down to 5-10 gwei, numerous times in the last 7 days.”ETH gas fees between Sept. 21 and Sept. 27. Source: Glasshawk
</blockquote>
The increased onchain activity and transaction fees also caused a surge in total <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-network-burns-395k-eth-per-hour-after-london-upgrade#:~:text=Aug%2006%2C%202021-,Ethereum%20network%20burns%20%24395K%20ETH%20per%20hour%20after%20London,is%20going%20up%20in%20smoke.&amp;text=is%20being%20burnt%20every%20minute,Ethereum's%20London%20upgrade%20on%20Thursday." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ether fees burnt</a> daily, rising over 900% to 2,097 ETH between Sept. 14 and Sept. 24, per data from CryptoQuant.
<figure><img alt="Ethereum gas fees rose 498% in two weeks as network activity surged — Report" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01924431-681c-7ae4-bab6-f44158f74a29">
 <figcaption style="text-align: center;">
 Ether Total Fees Burnt. Source: CryptoQuant
 </figcaption>
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Meanwhile, data from DappRadar <a data-ct-non-breakable="null" href="https://dappradar.com/rankings/chains?range=24h" rel="noopener noreferrer nofollow" target="null" text="null" title="null">shows</a> that DApp volumes have almost doubled over the last 24 hours, up 97% to $3.6 billion. Similarly, NFT volumes have also increased by 17% on the day, reinforcing the increasing activity on the Ethereum blockchain.&nbsp;
<h2 id="strong-ether-price-breaks-above-a-key-indicator-strong">Ether price breaks above a key indicator</h2>
From a technical perspective, Ether’s (ETH) <a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">price</a> has broken above its relative strength index (RSI) downtrend line that began at March’s multi-year high of $4,093, signaling a possible bullish shift in ETH’s short-term momentum.
<figure><img alt="Ethereum gas fees rose 498% in two weeks as network activity surged — Report" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01924431-ef01-74a1-b66f-2bdffb6235f7">
 <figcaption style="text-align: center;">
 ETH/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/ZO9hU4Wm/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://www.tradingview.com/x/ZO9hU4Wm/">TradingView</a>
 </figcaption>
</figure>
Despite the positive shift in momentum, Ether still remains sealed below its 100-day and 200-day exponential moving averages (EMAs), which currently sit at $2,770 and $2,864, respectively.&nbsp;
These EMAs continue to act as barriers and bulls will be required to flip them into support to confirm a sustainable recovery.&nbsp;
Meanwhile, Ethereum investment products broke a five-week negative streak, posting inflows of $87 million, “the first measurable inflows since early August,” according to the latest <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/investors-flock-to-bitcoin-investment-products-following-btc-recovery-to-66-k" rel="noopener noreferrer nofollow" target="null" text="null" title="null">report</a> by CoinShares. This was largely driven by inflows into spot Ethereum ETFs, which recorded $58.7 million in inflows on Sept. 27, according to data from Farside Investors.
BlackRock's ETHA continues to see positive flows with inflows of $11.5 million on Sept. 27, as its net inflows surpasses $1 billion.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum gas fees rose 498% in two weeks as network activity surged — Report

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