Ethereum Fees Skyrocket to $50 Due to High Demand; Record Volume on CME
- Ether seems to be in a precarious situation as the token retested even its 2017 high, $1,420.
- Among the crypto carnage, the second-largest cryptocurrency took a particularly brutal beating as the ETH prices went to $1,350 today.
On Sunday, like Bitcoin, Ether made a new all-time high at $2,042, and from this peak, it lost 33.8% of its value during the deep pullback we have seen since yesterday but started on Sunday before the ATHs. In comparison, BTC only had a 29% correction to $45k. BTC -7.19% Bitcoin / USD BTCUSD $ 55,117.50
-$3,962.95-7.19% Volume 74.25 b Change -$3,962.95 Open $55,117.50 Circulating 18.71 m Market Cap 1.03 t 10 h Swiss Bank UBS Plans Cryptocurrency Offerings to High Networth Clients 10 h Tom Brady, A Seven-Time NFL Super Bowl Champion, Dons Laser Eyes in Support of Bitcoin 13 h Deribit Lists Ether at 50k Strike Options with March 2022 Expiry
On Kraken, things went even wilder, as we reported, when ETH plunged to $700 momentarily. Regarding this, Kraken CEO Jess Powell said, “super whales can move any market any time they want,” adding: “Traders on Kraken are users. We're not market making.”
Still, the low we put in today took us to the level we saw on Feb. 2nd.
Institutional investors also joined in on this price action as the volume on CME for Ether's future hit a record high, just under $160 million, and open interest around $80 million. Eth futures were launched on the platform earlier this month.
CME ether futures logged a record volume day yesterday on new crypto market jitters pic.twitter.com/lsapnEw7mn
— skew (@skewdotcom) February 23, 2021
Meanwhile, much like yesterday, so much volatility and, of course, the activity resulted in high network congestion leading to the exchanges temporarily suspending withdrawals of ETH and Ethereum-based tokens. Binance is one of them.
With demand for the Ethereum network through the roof, average transaction fees skyrocketed to $50. Ever since October, the fees on the network have been off the charts, and much like in USD terms, in ETH as well, it has gone past 0.028 ETH, reaching for the DeFi summer mania peak of 0.032 ETH.
Average gas prices are painting the same picture above 400 Gwei. This, of course, brings in a significant amount of revenue for miners. IntoTheBlock noted,
“Today, the Ethereum hourly fees went as high as $4,561,988.54. And as fees go to a new high, so does the Daily Gas Cost with 983.2 Gwei.”