Ethereum fees almost doubled on the network hitting a new all-time high

Quick take

1 minute read

• Network fees on Ethereum are getting ready to continue climbing. 

• This $17 per transaction is an all-time high in average network fees.

Network fees on Ethereum are getting ready to continue climbing with the average value maximising at just over $17 per transaction according to recent data. This $17 per transaction is an all-time high in average network fees beating the previous record of $12.54 back in September during the massive hype train of DeFi. The average transaction cost on the network almost doubled during the spike in trading volume.

Yield chasing on numerous DeFi platforms further added to the transaction load of stablecoin transfers. As a result of this, it made the Ethereum network even more actively used than previously. And because of this, fees increased.

The fee spike on Monday caused the DeFi NFT project known as Aavegotchi to delay the launch of its mainnet. 

The launch of Ethereum 2.0 at the end of last year is believed to help improve scalability on the blockchain and push down the average transaction costs. Of course, this process has already started however some are expecting that the upgrade will take years to reach full actualisation. This spike in Ethereum transaction fees and trading volumes comes prior to the launch of CME ETH futures which are set to go ahead later in 2021.

Currently, Ethereum is priced at $1037 at the time of writing following a 4.51% increase over the past 24 hours. Over the past few weeks, the world of cryptocurrency has been spun into bullish fever. It will be interesting to see where it goes next.

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