Ethereum Gas Fees Spike 500% in Two Weeks
01 Oct, 2024 ● Kripto novosti
Ethereum network transaction fees have surged over the past two weeks due to increased onchain activity, as reported by Coinbase.
In Coinbase's weekly report published on September 27, it was noted that Ethereum gas fees between September 16 and 26 were up by 498% compared to the monthly average.
The median transaction cost jumped from $0.09 at the start of the month to $1.69.
Coinbase analysts David Duong and David Han attributed the rise in transaction fees to a general uptick in onchain activity on the Ethereum network.
The analysts mentioned that there wasn’t a single factor behind the increase but pointed out several contributors, including a 9% week-on-week increase in Ethereum decentralized exchange (DEX) volumes.
"USDC deposit rates on Aave have also slightly increased from 3.5% to 4.5%, indicating a marginal rise in leverage,” the analysts noted.
dditionally, Ether transfer volumes grew by 17% week-on-week, contributing to the higher transaction fees.
The spike in onchain activity is reflected in the frequent gas fee increases, which, according to blockchain efficiency firm Gashawk, reached as high as 40 gwei several times in the past week.
"ETH Gas has spiked above 30-40 gwei and then back down to 5-10 gwei numerous times over the last 7 days," Gashawk reported.
This heightened activity also led to a significant rise in total daily Ether fees burned, increasing by over 900% to 2,097 ETH between September 14 and 24, according to CryptoQuant.
Data from DappRadar further confirmed the trend, showing a near doubling of DApp volumes, with a 97% increase to $3.6 billion over the past 24 hours.
Similarly, NFT volumes rose by 17%, underscoring the growing activity on the Ethereum blockchain.
From a technical standpoint, Ether (ETH) has broken above the relative strength index (RSI) downtrend line that began in March when ETH hit a multi-year high of $4,093.
This signals a potential bullish shift in ETH’s short-term momentum.
However, despite the positive momentum, Ether remains below its 100-day and 200-day exponential moving averages (EMAs), which are at $2,770 and $2,864, respectively.
These EMAs continue to act as resistance, and bulls will need to turn them into support to confirm a sustained recovery.
Additionally, Ethereum investment products saw a break in their five-week negative streak, recording inflows of $87 million, the first significant inflows since early August, according to CoinShares.
This was primarily driven by spot Ethereum ETFs, which posted inflows of $58.7 million on September 27, according to data from Farside Investors.
BlackRock's ETHA also experienced positive inflows, bringing in $11.5 million on September 27, pushing its total net inflows beyond $1 billion.
Sources:
https://x.com/gashawkio/status/1839700093319917771
https://dappradar.com/rankings/chains?range=24h
