Ether Gas Prices Eclipsed 2000 Gwei on Black Wednesday
On Black Wednesday, the price of Ether crashed to $1,900 on Coinbase, representing a 56.6% drawdown from ATH of $2,380.
While the market is recovering today, with Ether currently trading around $2,900, the market-wide sell-off yet again proved to be brutal for Ethereum network users.
With so much going on, the average fees on the second-largest network made a new record of $71 and are today back under $25. Fees have been on an uptrend since Q4 2020, hitting new highs every other day.
For some blocks, it was more than $1,000 yesterday.
Gas prices simply skyrocketed, briefly eclipsing 2000 gwei from a mere 200 gwei in a span of two hours. It also kept between 1500 and 1700 gwei for about an hour.
Literally the worst gas spike I've ever seen. pic.twitter.com/SEYKsx8711
— Alex Svanevik 🧭 (@ASvanevik) May 19, 2021
Network fees and congestion on Ethereum actually made DeFi unusable yesterday; however, the sector didn’t blow up systemically as it continues to grow and start to attract big institutions. Delphi Digita noted,
“As markets crashed, DeFi liquidation opportunities popped up in every corner, giving way to gas wars amongst liquidators and arbitrageurs.”
When it comes to other metrics, transaction volume in ETH terms went to almost 20.5 million on May 19 but remained half of the 42 million recorded on May 8th.
When it comes to transaction count, it has been on an uptrend since October and has been moving towards 2 million. Surpassing the Jan. 2018 record of about 1.4 million, it peaked at 1.72 million on May 11 and is currently down at 65k, per Blockchair.
The network’s TPS, transactions per sector, has also fallen to 7.3 from nearly 20 last week.