Ethereum Gas Price Hasn’t Been This High Since its Launch
The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840 million trading in the past 24 hours.
The second-largest digital asset is up 200% YTD and about 290% since March sell-off. Santiment noted,
“ETH holders have been euphoric for good reason… Ethereum is at +2.78 deviations above its neutral resting position when it comes to weighted social sentiment, which is easily an all-time high.”
But what’s not good for Ethereum is the extremely high transaction fees that have been rising throughout 2020.
Ethereum's average transaction fee has spiked more than 3,636% since the beginning of this year, as per Ycharts.
At this rate next week it’s going to cost 1 ETH to send 1 ETH
— moon is tweeting (@MoonOverlord) August 10, 2020
According to Etherscan, on August 10th, a record of 9,332 ETH in transaction fees was paid, except for on two occasions on June 10 and 11 due to a couple of transactions that paid million dollars in fees.
The average gas price has also skyrocketed surging to 118.33 Gwei, recording an increase of 915% since earlier this year. Trader and economist Alex Kruger noted,
“High demand is driving Ethereum gas prices up. The 30-day average gas price has recently reached levels only seen in the summer of 2015, right after Ethereum launched.”
Ethereum network is working at full capacity, with the daily gas used continuing to surge to new highs in 2020.
From 37.2 billion on January 1st, gas usage has reached 77.8 billion on August 10th. Since late June, it has been keeping above 70 billion.
This growth has been the result of ever-increasing stablecoin supply and the exploding DeFi space.
This past week, however, Ethereum saw a temporary slowdown in its growth with ETH active addresses about even for the week while transactions grew by just 0.9% week-over-week. According to Coin Metrics, transfers on the network declined by 1.4%.
But this week, the market is yet again active as Glassnode noted, 1.2 billion USDT, an all-time high, was transferred on Ethereum within a single hour, yesterday. In this quarter, the supply of stablecoins has been further gaining momentum, already surpassing $12 billion.
As for the DeFi sector, another record of $4.74 million has been locked in this space with an all-time high 4.51 million ETH also locked.