Tuesday, May 24, 2022
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Ether fees almost double as the trading volume reaches $50B in 24 hours

In the middle of a trade volume increase, the total transaction cost on the Ethereum network almost doubled.

According to YCharts data, Ethereum network fees continue to grow, with the average value topping out at $17.43 per transaction. Average fees were around $10.20 earlier on Monday, as previously stated by Cointelegraph.

The $17.43 per transaction marks an all-time high in average Ether fees at the height of the DeFi mania, crushing the previous record of $12.54 back in September. ETH transaction fees have fallen dramatically as of press time, with a median cost of $1.63 based on Etherscan, ETH Gas Station and Gas Now data.

In addition to the transaction load of stablecoin transactions, Yield chasing on various DeFi networks made the Ethereum network much more heavily used than in previous days. As a result, average fees skyrocketed, much to the detriment of certain participants in the DeFi market.

Indeed, the ETH fee jump on Monday forced Aavegotchi’s DeFi NFT project to delay its debut on the main net. The project also claimed that it should potentially consider releasing a ‘L2 first’ on the Matic Network.

The announcement of Ethereum 2.0, the update of the network to a proof-of-stake consensus, is expected to increase the scalability of the blockchain and bring down average transaction costs. While the project has already began, others expect it to take years for the update to achieve complete actualization. Some analysts say a better bet for combating rising transaction costs is layer-two scaling strategies.

According to data from CoinMarketCap, Monday’s fee jumps also coincided with Ether setting a record 24-hour trading rate of $53 billion.The growth in transaction costs and trading rates for Ether falls ahead of the CME ETH futures launch later this year. When CME revealed its Bitcoin futures back in 2017, BTC price and transaction fees soared in the middle of increasing investor interest.

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