Crypto News

Ethereum Fees Hit New Highs As Ether, DeFi Coins Surge

Ethereum fees reach highs not seen since July 2020

The price of Ethereum not only has hit a record high of $1,700 in recent days, but the cost of using the network skyrocketed as well. Per Blockchain, the average transaction fee is now $20.63.

Ethereum last broke its transaction fee record a month ago on Jan. 11, hitting an average $19 per transaction. The increase correlates with the general price run Ether has enjoyed since the New Year.

Ethereum miners have been a primary beneficiary of the fee spike. The industry earned some $830 million in Ether last month with 40% attributed from fees alone.

In terms of ETH, it still has a long way to go as it currently costs 0.0124 ETH, while the ATH was 0.032 ETH during the DeFi mania last September.

Average gas prices are also surging to 205.8 Gwei. However, that is nowhere near July 2020 levels that reached 700 Gwei. The all-time high is 800 Gwei, which was last seen in December 2016.

Popular DEX Uniswap has paid $34.5 million in gas fees over the last 30 days, becoming unusable for smaller participants. Uniswap is managing more than $1 billion in daily volume during the ongoing bull market. While competitor Sushiswap is doing half of it.

Meanwhile, the biggest U.S. exchange Coinbase only did just over 4x of Uniswap’s volume, which could see a $50-$100 billion valuation for its direct listing.

The increase in the cost of transacting on the Ethereum network also reflects growing demand for ERC-20 based tokens, particularly stablecoins and the red-hot decentralized finance (DeFi) sector.

DeFi Tokens Pushing Ethereum Fees Higher

The high cost to interact with the Ethereum network is to be expected as not just the price of Ether, but DeFi tokens have also been enjoying the bullish onslaught as well. DeFi’s total market capitalization has soared in the past 24 hours, led by UMA (165%), SWRV (43%), AAVE (36%), WNXM (29%), BADGER (25%), COMP (20%), and SUSHI (13%).

This has pushed the market cap of DeFi coins past $60 billion. Total value locked in DeFi space has been hitting new highs every day lately, currently at almost $32.5 billion.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
DeFi Token Aave Sees 50% Daily Surge To Reach ATH
1 month ago

[…] DeFi market as a whole has seen a massive surge with Ethereum price rising more than 100% so far this year. The combined market of top 95 DeFi assets has surged more […]

Matt Borelli

Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.

Related Crypto News

Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...
John McAfee Indicted On Fraud & Money Laundering Charges For ‘Pump And Dump’ Scheme
John McAfee and his executive adviser Jimmy Gale Watson Jr. have been charged with securities fraud. Federal prosecutors believe...
PAID Network ($PAID) Crashes 70% In Minutes As Network Allegedly Exploited
$PAID, the native token of PAID Network, crashed by more than 70% in less than an hour. This is...
BitGo Acquires Trust License From New York Regulators
Digital asset custody BitGo has received a New York Trust license from the New York State Department of Financial...
Polkamarkets Collaborating With Bridge Mutual For Decentralized Insurance Coverage
Polkamarkets and Bridge Mutual jointly announced a partnership that will allow Polkamarkets’ users to claim decentralized finance (DeFi) risk...
MicroStrategy Purchases Additional 205 Bitcoin Valued At $10 Million
MicroStrategy CEO Michael Saylor announced the company has bought an additional 205 Bitcoins valued at roughly $10 million. This...

Featured Crypto News

Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...
John McAfee Indicted On Fraud & Money Laundering Charges For ‘Pump And Dump’ Scheme
John McAfee and his executive adviser Jimmy Gale Watson Jr. have been charged with securities fraud. Federal prosecutors believe...
PAID Network ($PAID) Crashes 70% In Minutes As Network Allegedly Exploited
$PAID, the native token of PAID Network, crashed by more than 70% in less than an hour. This is...
BitGo Acquires Trust License From New York Regulators
Digital asset custody BitGo has received a New York Trust license from the New York State Department of Financial...
Polkamarkets Collaborating With Bridge Mutual For Decentralized Insurance Coverage
Polkamarkets and Bridge Mutual jointly announced a partnership that will allow Polkamarkets’ users to claim decentralized finance (DeFi) risk...
MicroStrategy Purchases Additional 205 Bitcoin Valued At $10 Million
MicroStrategy CEO Michael Saylor announced the company has bought an additional 205 Bitcoins valued at roughly $10 million. This...