Ethereum Gas Fees Surge 498% in Just Two Weeks

Over the last two weeks, the gas fees to use Ethereum have skyrocketed by 498% due to a jump in network activity.

According to a report from Coinbase published on September 27, the average gas fees between September 16 and September 26th were nearly five times higher than usual. The median transaction cost rose from just $0.09 at the start of the month to $1.69.

So, what caused this huge increase? Coinbase analysts David Duong and David Han explained that there wasn’t just one reason for this spike. They noted that activity on Ethereum has been increasing for several reasons.

For instance, trading volumes on decentralized exchanges (DEXs) saw a slight rise of 9% week-over-week. Additionally, the total amount of Ether (ETH) transferred increased by 17% week-over-week, leading to those higher transaction fees.

Gas fees are like the tolls you pay when you drive on a busy road. When more cars are on the road, the tolls can go up! The Ethereum network uses gas fees to pay for transactions, and these fees can rise sharply when more people are using the network.

Recently, blockchain efficiency firm Gashawk reported that gas fees spiked to 40 gwei multiple times last week. This shows just how busy the Ethereum network has become.

ETH Gas has spiked above 30-40 gwei and then back down to 5-10 gwei, numerous times in the last 7 days.

GasHawk provides users with peace of mind that they will execute at the best base fee, regardless of the current volatility on ETH mainnet pic.twitter.com/w5TBtaFHPY

— gashawk.{eth, io} (@gashawkio) September 27, 2024

Another interesting trend is that the amount of ETH being “burned” has surged over 900% to 2,097 ETH between September 14 and September 24. Burning ETH means that those coins are permanently removed from circulation, making the remaining coins potentially more valuable.

Moreover, data from DappRadar shows that activity in decentralized applications (DApps) has almost doubled in the last 24 hours, increasing by 97% to $3.6 billion. Even non-fungible token (NFT) volumes are up 17%, adding to the lively Ethereum scene.

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