The post Ethereum Network Surge Spurs 498% Rise in Gas Fees: Will ETH Price Follow? appeared on BitcoinEthereumNews.com.

Ethereum network activity has seen a significant rise, leading to a sharp increase in ETH gas fees. This surge in gas fees has been attributed to various factors, including increased DEX volumes and a rise in USDC deposit rates on the Aave platform. The increased onchain activity has also caused a substantial rise in total Ether fees burned daily. Discover the nuances behind the recent surge in Ethereum network activity and its impact on ETH gas fees, providing a detailed analysis for informed financial decisions. Ethereum Network Sees Surge in Activity and Gas Fees The Ethereum network has experienced a notable uptick in activity over the last two weeks, which has been accompanied by a significant increase in gas fees. According to a report by Coinbase, the average Ethereum gas fees between September 16 and September 26 increased by 498% compared to the monthly average. This rise in transaction costs reflects a broader surge in onchain activity. Factors Contributing to Increased Activity Coinbase analysts David Duong and David Han noted that there isn’t a single driver behind this increased activity. Instead, it results from several interrelated factors. For instance, the volume of trades on Ethereum decentralized exchanges (DEXs) has seen a modest increase of 9% week-on-week. Furthermore, USDC deposit rates on the lending platform Aave have risen from 3.5% to 4.5%, suggesting a modest uptick in leverage within the market. Ethereum Transaction Fees and Volume Increased onchain activity has led to Ethereum transaction fees spiking, with gas fees ranging between 30-40 gwei multiple times within the last week. According to Gashawk, a blockchain efficiency firm, these fluctuations in gas fees correspond with increased transaction volumes, which have risen 17% week-on-week. This surge in transaction fees has also led to a dramatic increase in total Ether fees burned daily, rising over…

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Filed under: News - @ October 1, 2024 12:25 am