The post Ethereum gas fees surge as on-chain activity hits new highs – What now? appeared on BitcoinEthereumNews.com.

Ethereum on-chain activity reaches new highs. Ethereum sees an increase in involvement of traders on DEX. Ethereum [ETH], the leading blockchain for smart contracts, is seeing an increase in on-chain activity. This rise is driving higher transaction fees, especially as more traders leverage decentralized finance (DeFi) platforms that rely on Ethereum’s network. ETH has been on an upward trajectory, mirroring the broader crypto market in anticipation of a bullish final quarter. With Ethereum gaining traction and seeing large transaction volumes, the skyrocketing fees raise concerns, particularly with the increasing involvement of traders. Source: Dune, Glassnode, Coinbase While analysts have not attributed this surge to one cause, the rise in decentralized exchange (DEX) volumes and the increased usage of the ETH network have contributed significantly to the higher transaction fees. Active addresses rising One key on-chain metric contributing to the rising fees is the analysis of Ethereum addresses. Daily active addresses are increasing rapidly, showing a 29% growth, while new addresses have risen by 43%. Even zero-balance addresses have grown by 28%, but active addresses remain at the highest levels. This suggests heightened activity on the network, with more transactions being carried out simultaneously. The more active the network, the more difficult it becomes to verify transactions, which, in turn, drives up transaction fees. Source: IntoTheBlock The surge in DEX volumes Another contributing factor to the rise in Ethereum transaction fees is the surge in DEX volumes. The total volume of ETH traded on DEXs in the last 24 hours stood at $978 million, with the weekly volume hitting $8.38 billion, marking a 2.13% increase. The monthly volume bars also indicate steady growth in ETH trading across DEXs. As decentralized exchanges play a significant role in Ethereum’s network activity, their growth leads to more congestion, which increases transaction costs. Source: DefiLlama…

---

Filed under: News - @ September 29, 2024 10:05 pm