Ethereum’s network fees for transactions experienced an increase again in the last three weeks. On average and in median fees spiked respectively to $15.5 and $9.5.
Ethereum transaction fees last hit their all-time high in the middle of August. Then users transferred $6.87 million worth of Ethereum to miners daily. Today the average fee for transactions has increased to $15.5, and the median commission has spiked to $9.5. Meanwhile, just yesterday the numbers were respectively $10.33 and $5.68.
Analyst Wilson Withiam has highlighted that higher commissions could be both good and bad for Ethereum. “They can potentially scare off undecided users,” he noted. At the same time, the rise of fees indicates more users on the network.
In order to counter rising fees, projects that are conducting larger numbers of transactions on the network are looking for ways to cut down the load volumes on the blockchain. For instance, the developers of the ever more popular stablecoin USDT just recently stated that their crypto-asset will empower the second-tier Ethereum solution ZK-Rollups to significantly turn down the load on the blockchain and thus reduce the transaction fees.
It is considered that transaction fees rise in part due to the so-far perpetual growth of DeFi. In turn, that is paving the way to decentralized finance “slowly but surely becoming an industry designated for the rich,” Vitiam stated.
The DeFi sector is showing no indications of slowing down – as we noted in a recent article, the volume of blocked assets in DeFi applications reached $9.44 billion, while at the end of August these figures for the first time exceeded $7 billion.
