As a new wave of DeFi platforms and products offering decentralized finance has kicked off in the blockchain community, the second-largest crypto in terms of market cap, Ethereum, has fabricated massive growth. Currently, it’s trading at $391.
However, the report shows that the growing trend of Ethereum has also pushed gas fees to attain an all-time high of $6.87 million. On August 12, some traders have faced unusual transaction fees on Ethereum, mainly fuelled by an increase in new ICOs and DeFi protocols.
Ethereum Transactions Cost Reached All-Time High
Market analysis and data records show that previously ATH was during the market peak of 2017. The new analysis shows, one ETH transaction would be covered by a $1200 US-supplied stimulus. While pointing toward network fee, Three Arrows Capital founder Su Zhu said, “spending more money on GAS for ethereum than pretty much anything else in real life now.”
Similarly, Josh Rager, the founder of Blockroots, posted a tweet:
“Was going to get in the $MYX presale prior to Uniswap Unfortunately gas fees were a little high For 1 ETH the fees were $1,292 Decided to pass… plenty of money to be made elsewhere.”
Ethereum fees are normally less costly than Bitcoin fees; however, Ethereum recently has seen a significant rise in its gas price reaching an all-time high. Yesterday data shows that Bitcoin transaction fees were low, almost $1.43 million in total. Compared to Ethereum gas, the figure is 4.8 times lower.
Unfortunately, volatility can also provoke an abnormal hike in gas costs. Most experts consider that Ethereum’s network usage is directly correlated with the gas price. Ethereum’s price itself doesn’t necessarily influence the cost of gas.