Fun

ETH Fees Surge to All Time High After the Crypto Passed the $1,000 Mark

News Feed - 2021-01-10 07:01:47

ETH Fees Surge to All Time High After the Crypto Passed the $1,000 Mark


After the ether token surged past the $1,000 mark on January 3, the average transaction fee on the network similarly soared to a new all-time high (ATH) of $17.41, some 24 hours later. Although the average fee has since retreated, data on January 8 shows that the latest average fee at $9.79. This figure still well above the $3.56 seen on the first day of the new year. Resurgent ETH fees


Before the new ATH, the Ethereum network’s previous highest average fee of $12.54 was recorded on September 1, 2020. At that time, some crypto enthusiasts attributed this surge to the decentralized finance (defi) hype. However, as the defi mania began to dissipate, ETH transaction fees gradually dropped.



However, as recent data shows, the network’s transaction fees, which averaged less than $5 for much of Q4 of 2020, have now stayed above $9 for all but two days of January 2021. This return of high fees on the network comes more than a month after ETH’s migration to a proof of stake (POS) consensus mechanism.



Meanwhile, the latest data shows that at the current fee levels, it now costs the same or even less to transact on the BTC network than on the ETH network. To illustrate, in the period during which ETH fees surged to the new ATH, transaction fees on the BTC have remained within the same range. For instance, during the entire Q4 period, fees on the BTC network have only peaked at $13.41 on October 31.



For much of Q4 of 2020, the fees on the Bitcoin network have fluctuated between the October 31 high of $13.41 and $1.44 the lowest average in that period. Similarly, on the BCH network, whose crypto is up by more than 100% since October 1, fees remain less than $0.01 per transaction. Upgrade to Fix Problem of High Fees


Meanwhile, Kamil Brejcha, Founder at Dexfin offers the possible reason why ETH fees have spiked and how ongoing updates will fix this. Brejcha explains:


“We face high ETH fees because the Ethereum network still relies on miners to be block producers. The current update is called the Beacon chain, which allows depositing Ethereum for staking nodes. These nodes run on their own blockchain, which is not yet part of the mainnet.”


The Dexfin founder also details the upgrading process which starts with the Beacon chain. In 2021, the next Shard chain will follow before the merging of the two in the year 2022 or later. After that, the “transaction speed should improve more, also cutting the gas fee.”


What do you think is causing the fees on the ETH network to go up? Tell us your thoughts in the comments section below. Bank of America Predicts "Mother of All Bubbles" for Bitcoin MARKETS AND PRICES | 2 hours ago Morgan Stanley Massively Increases Bitcoin Exposure Through Microstrategy MARKETS AND PRICES | 1 day ago Tags in this story ATH, BCH Fees, BTC, BTC fees, Decentralized finance (Defi), ETH fees, Ethereum, High network fees, Proof of Stake (PoS), Record ETH Fees


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Report: IMF Warns Kenyan Central Bank Against Introducing a CBDC That Harms Fintechs and Banks
Report: IMF Warns Kenyan Central Bank Against Introducing a CBDC That Harms Fintechs and Banks The global lending institution, the International Monetary Fund (IMF) has told the Ke
Elon Musk’s X suspends data collection for AI training, EU watchdog says
Savannah Fortis11 hours agoElon Musk’s X suspends data collection for AI training, EU watchdog saysAfter proceedings in an Irish court, the local Data Protection Commission said X agreed to suspend processing the perso
Biggest Movers: ATOM, DOT Hover Below Key Resistance Levels on Saturday  
Biggest Movers: ATOM, DOT Hover Below Key Resistance Levels on Saturday   ATOM and DOT were trading in a sideways trend on Saturday, as crypto markets were mainly in consolidatio
72% of Investors Will Hold Bitcoin Even if Price Falls to $0
72% of Investors Will Hold Bitcoin Even if Price Falls to $0A new poll finds that 72% of bitcoin investors are bullish about the cryptocurrency and will hold onto it even if the pri
Palantir to Accept Bitcoin for Services, Considers Keeping BTC on Its Balance Sheet
Palantir to Accept Bitcoin for Services, Considers Keeping BTC on Its Balance Sheet Palantir Technologies, the Peter Thiel-backed, American software company spec
FTX Bankruptcy: Judge Delays Decision on Appointing Independent Examiner Amid Cost Concerns
FTX Bankruptcy: Judge Delays Decision on Appointing Independent Examiner Amid Cost Concerns Judge John Dorsey has delayed his decision on whether to appoint an independent examiner
Binance founder CZ walks free from US prison
Alex O’Donnell3 hours agoBinance founder CZ walks free from US prisonHe served four months in federal prison for charges including alleged violations of United States Anti-Money Laundering rules.1075 Total views9 Total
Two Entertainment Projects Featuring Bored Ape Yacht Club NFTs Get Backing From Universal Music Group, Timbaland
Two Entertainment Projects Featuring Bored Ape Yacht Club NFTs Get Backing From Universal Music Group, Timbaland This week Universal Music Group, the Dutch–American multinat
A DAO Is Attempting to Raise $4 Billion to Purchase the Denver Broncos
A DAO Is Attempting to Raise $4 Billion to Purchase the Denver Broncos A decentralized autonomous organization (DAO) wants to purchase the National Football League (NFL) team the D
India’s Election Commission Developing Blockchain System for Voting
India"s Election Commission Developing Blockchain System for Voting The Election Commission of India is collaborating with the Indian Institute of Technology to develop a blockch
Derek Andersen3 hours agoCoinbase warns customers about subpoena in apparent CFTC Bybit probeCryptocurrency exchange Bybit restricts use in the United States, although it may be possible to get around it.1929 Total views
Final Judgment: Telegram to Pay Crypto Investors Back $1.2 Billion, US Court Orders
Final Judgment: Telegram to Pay Crypto Investors Back $1.2 Billion, US Court OrdersThe dispute between Telegram and the U.S. Securities and Exchange Commission (SEC) is coming to a