Ethereum Transaction Fees and Network Activity
At the beginning of September, the average transaction fee on Ethereum had fallen below $1 USD for the first time since July 2020, long before Ethereum’s proof-of-stake Merge, blob upgrades, or the launch of the Bored Ape Yacht Club NFT collection.
However, in the past few weeks, the seven-day moving average transaction fee on Ethereum spiked. Its latest value on September 21 was $3.52, more than triple its value of $0.85 on September 1, according to data from The Block.
The recovery in transaction fees also increased the burn rate of Ethereum, which surged from 80.27 ETH on September 1 to 1,360 ETH on September 21, marking a 1600% increase in just three weeks according to The Block’s data.
Uniswap led the list of top gas-consuming smart contracts on the network in the last 30 days, along with its V2 variant. Other notable mentions included Telegram-centric crypto and NFT trading bots like Maestro and Banana Gun. Ether transfers and transactions involving stablecoins Tether (USDT) and Circle’s USD Coin also made the list, per The Block’s data.
Despite the rise in transaction fees and burns, the seven-day moving average of active accounts on the network has significantly decreased, reaching its lowest value year-to-date with an 11% drop from the start of the month. The current count of about 385,000 accounts represents the lowest level since December 1, 2023.
Ethereum, the world’s second-largest cryptocurrency by market cap, has faced renewed scrutiny lately, particularly as the ratio of Ethereum to Bitcoin’s market cap hit its lowest point since 2021 before a slight recovery. “No one likes Ethereum right now,” said Bitwise CIO Matt Hougan, who characterized the chain as a “contrarian bet.”
Additionally, daily revenue for Ethereum stakers recently fell to a six-month low, as previously reported by The Block.
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