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Ethereum Transaction Fees Hit Record Highs as Ether, DeFi Coins Soar
The average Ethereum transaction fee has passed $20 for the first time.
Fees for transacting on the Ethereum network breached previous records, passing above $20 for the first time Thursday.
STORY CONTINUES BELOW
- As of 05:45 UTC (12:45 a.m. ET), the average and median transaction fee on Ethereum reached as high as $23.43 and $11.77, respectively, data from Blockchair indicates.
- Ethereum last broke its transaction fee record a month ago on Jan. 11, hitting an average $19 per transaction. Current values double the peak transaction fees recorded during the "DeFi summer" of 2020.
- The increase in fees correlates with the general price run ether has enjoyed since the New Year. The CoinDesk 20 places year-to-date returns on the digital asset at 130%.
- The increase in the cost of transacting on the Ethereum network also reflects growing demand for ERC-20 based tokens, particularly stablecoins and the red-hot decentralized finance (DeFi) sector.
- Led by tokens like uniswap (UNI) and aave (AAVE), DeFi's total market capitalization is up 16.37% in 24 hours, according to Messari.
- Ethereum miners have been a primary beneficiary of the fee spike. The industry earned some $830 million in ether last month with 40% attributed from fees alone.
William Foxley
Will Foxley is the host of The Mining Pod and publisher at Blockspace Media. A former co-host of CoinDesk's The Hash, Will was the director of content at Compass Mining and a tech reporter at CoinDesk.
