Ethereum gas fees rose 498% in two weeks as network activity surged — Report
2024.09.30 19:35
Ethereum network transaction fees have risen significantly over the last two weeks following a surge in onchain activity, according to Coinbase.
Coinbase’s weekly report, published on Sept. 27, notes that the average Ethereum gas fees between Sept. 16 and Sept. 26 were 498% higher than the monthly average, with the median transaction cost rising from $0.09 at the beginning of the month to $1.69.
Ethereum transaction fees and ETH transfer volumes
Coinbase analysts David Duong and David Han said that the spike in transaction fees was due to a surge in onchain activity on Ethereum.
“There has been no single driver of increased activity,” the analysts said, highlighting several contributing factors, including Ethereum decentralized exchange (DEX) volumes which have increased slightly, up 9% week-on-week.
“USDC deposit rates on lending platform Aave have also moderately increased from 3.5% to 4.5%, suggesting a slight increase in leverage.”
Additionally, total Ether transfer volumes have risen by 17% week-on-week, corresponding with higher transaction fees, the analysts added.
Increasing onchain activity is evident in upticks in gas fees, which, according to blockchain efficiency firm Gashawk, has spiked to 40 gwei several times over the last week.
“ETH Gas has spiked above 30-40 gwei and then back down to 5-10 gwei, numerous times in the last 7 days.”ETH gas fees between Sept. 21 and Sept. 27. Source: Glasshawk
The increased onchain activity and transaction fees also caused a surge in total Ether fees burnt daily, rising over 900% to 2,097 ETH between Sept. 14 and Sept. 24, per data from CryptoQuant.
Ether Total Fees Burnt. Source: CryptoQuant
Meanwhile, data from DappRadar shows that DApp volumes have almost doubled over the last 24 hours, up 97% to $3.6 billion. Similarly, NFT volumes have also increased by 17% on the day, reinforcing the increasing activity on the Ethereum blockchain.
Ether price breaks above a key indicator
From a technical perspective, Ether’s (ETH) price has broken above its relative strength index (RSI) downtrend line that began at March’s multi-year high of $4,093, signaling a possible bullish shift in ETH’s short-term momentum.
ETH/USD daily chart. Source: TradingView
Despite the positive shift in momentum, Ether still remains sealed below its 100-day and 200-day exponential moving averages (EMAs), which currently sit at $2,770 and $2,864, respectively.
These EMAs continue to act as barriers and bulls will be required to flip them into support to confirm a sustainable recovery.
Meanwhile, Ethereum investment products broke a five-week negative streak, posting inflows of $87 million, “the first measurable inflows since early August,” according to the latest report by CoinShares. This was largely driven by inflows into spot Ethereum ETFs, which recorded $58.7 million in inflows on Sept. 27, according to data from Farside Investors.
BlackRock’s ETHA continues to see positive flows with inflows of $11.5 million on Sept. 27, as its net inflows surpasses $1 billion.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
