Ethereum

Aave

bullish

USDC

Ethereum network transaction fees have experienced a sharp rise over the past two weeks, fueled by a surge in onchain activity, according to a recent report from Coinbase.
The report highlighted that average Ethereum gas fees between September 16 and 26 increased by 498% compared to the monthly average. The median transaction cost jumped from $0.09 at the beginning of the month to $1.69 during this period.
Coinbase analysts David Duong and David Han explained that the spike in fees is due to multiple factors contributing to the rise in activity on the Ethereum network.
One key factor is the slight increase in decentralized exchange (DEX) volumes on Ethereum, which rose by 9% week-on-week. Additionally, lending platforms like Aave saw an uptick in USDC deposit rates, rising from 3.5% to 4.5%, indicating an increase in leverage within the network.
Furthermore, Ether transfer volumes also surged by 17% over the week, further driving up transaction costs. Data from blockchain efficiency firm Gashawk shows that Ethereum gas fees have fluctuated significantly, spiking between 30 and 40 gwei multiple times in the last seven days.
The increased onchain activity has also led to a significant rise in Ether being burned as part of the network’s fee mechanism. Between September 14 and 24, the total Ether fees burned daily surged by over 900%, reaching 2,097 ETH, according to Cointelegraph.
The increased activity is not limited to transactions; decentralized applications (DApps) on the Ethereum network also saw a surge in volume. According to DappRadar, DApp volumes nearly doubled over a 24-hour period, reaching $3.6 billion, while non-fungible token (NFT) volumes rose by 17%, further indicating the growing activity on the blockchain.
On the technical side, Ether (ETH) has broken above its relative strength index (RSI) downtrend line, signaling a potential bullish shift in its short-term momentum. However, Ether remains below key resistance levels, including its 100-day and 200-day exponential moving averages (EMAs), which sit at $2,770 and $2,864, respectively. These levels will need to be flipped into support for a sustainable recovery.
Despite the network’s rising transaction fees, Ethereum investment products are seeing renewed interest. After five consecutive weeks of negative outflows, Ethereum funds posted inflows of $87 million, largely driven by spot Ethereum exchange-traded funds (ETFs), which recorded $58.7 million in inflows on September 27, according to CoinShares.
BlackRock’s ETHA fund continues to see strong demand, with $11.5 million in inflows on the same day. The fund’s net inflows have now surpassed $1 billion, underscoring the growing confidence in Ethereum’s long-term potential.
The post <a href="https://www.unlock-bc.com/130109/ethereum-gas-fees-surge-498-two-weeks-why/" rel="noopener noreferrer nofollow">Ethereum Gas Fees Surge 498% in Two Weeks, Why?</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.

Ethereum Gas Fees Surge 498% in Two Weeks, Why?

UNLOCK_ENG

Other articles published on Oct 1, 2024

Bitcoin ETFs see eighth straight day of inflows with $61.3m, Ether ETFs face modest outflows

Naira devaluation: Starlink increase router price to N590,000, monthly subscription up by 100%

Metaplanet Continues Bitcoin Buying Spree, Adds 107 BTC Despite Market Fluctuations

EIGEN FDV slips to $6.4b, in a victory for Polymarket traders

Bitcoin’s Bear and Bull Market Targets Revealed: A Rise Above $100k or Dip Below $30k?

Europe gathers global experts to draft ‘Code of Practice’ for AI

Join our free newsletter for daily crypto updates!