Ethereum network fees have increased by 368% since the beginning of the month

The increase in fees caused an increase in the volume of coins burned during transactions

23.09.2024 - 09:40

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Last updated on Nov 17, 2024

What’s new? Fees on the Ethereum network have increased by 368% since the beginning of September. At the beginning of the month, the seven-day moving average (MA) of the transaction cost was $0,85, which was the lowest since July 2020, but it had already risen to $3,98 on September 21.

Material by The Block

What else is known? This, in turn, caused an increase in the volume of burned ETH coins, because after The Merge upgrade and the transition of the blockchain to the Proof of Stake (PoS) consensus algorithm in September 2022, the coins paid as fees began to be destroyed to maintain deflation.

Thus, since the beginning of the month, the volume of coins destroyed daily in transactions has increased by 1295%: from 80,27 to 1120 ETH. The figure reached a local peak of 1660 coins on September 20.

The largest share of transactions over the last 30 days in the ecosystem came from leading decentralized crypto exchange (DEX) Uniswap and its second and third-version protocols. The top included Maestro and Banana Gun trading bots for Telegram messenger, as well as Ethereum transactions related to the transfer of the leading in terms of capitalization stablecoins USDT from Tether and USDC from Circle.

At the same time, the seven-day MA of active network accounts fell to its lowest since early December last year and 14% since the beginning of the month: to 373 770.

ETH has attracted increased attention after its capitalization against bitcoin last week fell to its lowest since 2021.

In addition, the seven-day MA daily revenue of ETH stakers also fell to its lowest since February this year, to $5,8 million.

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At the time of writing, ETH is trading at $2642, having added 2% overnight. The weekly increase was 14,5%, and the asset has risen in price by 16% since the beginning of the year.

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