Bitcoin News and Finance
Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50% Skip to main content

Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50%

While the second-largest crypto asset by market capitalization, ethereum, has risen 27% against the U.S. dollar in the last two weeks, the network’s average and median-sized gas fees have increased by more than 50%. On the first day of 2023, the average fee to spend ether was around $2.93 per transfer, but today the average cost is 54% higher at $4.52 per transfer.

Rise in Ethereum Value Leads to Increased Onchain Transaction Costs

Sending ethereum (ETH) is becoming more costly as the crypto asset’s value has risen greatly over the last 14 days. At the time of writing, ether is trading at $1,542 per unit, after reaching a high of $1,606 per unit during the same 24-hour period on Jan. 18, 2023.

As ethereum’s value in U.S. dollars has increased, the cost to move ether and the myriad of ERC20 tokens has also risen. Data from bitinfocharts.com indicates that on Jan. 1, 2023, the average ether gas fee was $2.93 per transfer. 18 days later, the average fee to send ethereum is 54% higher at $4.52 per transaction.

Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50%

Bitinfocharts.com’s median-sized ethereum fee chart highlights a similar pattern. 18 days ago on the first day of 2023, bitinfocharts.com’s median ether fee chart showed the cost was around $1.06 per transfer to send ethereum.

On Wednesday, the same chart showed the cost has risen to 0.0013 ETH per transfer or roughly $1.96 using current ether exchange rates. That means the median-sized ethereum fee has jumped 84% since Jan. 1. Furthermore, while the gas measurement is usually estimated at a much lower rate, etherscan.io’s “Gas Tracker” also shows an increase since the start of the year.

Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50%

On that day, the web portal’s fee tracker indicates that the high-priority ether gas fee was around $0.30 per transfer or 20 gwei. 18 days later, a high-priority fee is still 20 gwei or $1.14 per ETH transaction, which is an increase of around 280%. On Jan. 1, the cost to transact with Opensea was an estimated $1.12 per transaction and today it’s up to $3.99.

A swap on a decentralized exchange (dex) platform was $2.87 and now it’s up to $10.28 to make a trade on a dex like Uniswap. Sending an ERC20 token like USDT and USDC would cost a sender around $0.84 per transaction, and today it’s around $3.02 to send an ERC20.

Furthermore, the cost of layer-two (L2) transactions has risen as well. Three days ago on Jan. 15, 2023, Bitcoin.com News reported on the rise of Arbitrum and Optimism transactions. On that day, an Arbitrum network transfer was around $0.101 per transfer, and today’s fee is around $0.188 per transfer, according to data from Dune Analytics.

Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50%

Similarly, Optimism’s network transaction costs were $0.1410 per transfer three days ago, and on Jan. 18, the cost to move coins on the L2 chain Optimism is $0.3039 per transaction. The rise in higher ether gas fees in recent times has broken the record of long months of low fees on the Ethereum network.

What impact do you think the rising gas fees will have on the Ethereum network and its users? Share your thoughts in the comments below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory