Ethereum fees have increased 2,300% since June

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Average transaction fees on Ethereum soar to $ 51.45, according to data from crypto site BitInfoCharts. The figures show an increase of 2,293% since the end of June.

Just seven days ago, the average transaction fee on Ethereum was $ 22.52. This month has been particularly finicky for Ethereum gas charges. On October 15, the average fee was $ 45.74, nearly double the number for the first of the month: $ 23.79.

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The price of Ethereum trades has been in a roller coaster ride since the London hard fork in August, but despite large variations, often from day to day, gas charges on the network tend to increase.

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Interestingly, BitInfoCharts gives a figure based on the average transaction fees recorded since yesterday. On Etherscan, real-time transaction fees currently average $ 44.33.

Why are the fees increasing?

Transaction fees increase when demand for Ethereum increases. Last week, Ethereum and Bitcoin prices rose in tandem, hitting new all-time highs in the middle of the week.

Since then, the price of bitcoin has fallen from $ 66,930 to $ 61,683, a decline of about 8%, while ethereum continued to rise to a new all-time high of $ 4,456 yesterday.

The two market leaders often exhibit similar price movements. The combined market capitalization of the global cryptocurrency market is $ 2.63 trillion. Bitcoin is worth $ 1.1 trillion, while Ethereum comes in second, with half a trillion dollars.

The doubling of the average transaction fees on Ethereum between last Saturday and today correlates with the trading volumes of the past seven days. Last Saturday $ 14.7 billion worth of Ethereum was traded, while yesterday that figure rose to $ 26 billion.

The explosion in Ethereum price and trade activity over the past week could be due to excitement over the latest blockchain network upgrade. The Altair upgrade is a step towards Ethereum 2.0, a faster, greener, cheaper and more secure Ethereum network.

Specifically, Altair is designed to facilitate the Ethereum transition of a network that uses a proof-of-work consensus mechanism – where miners with the most computing power validate the more transactions – a “proof-of-stake” type mechanism, where minors who invest the most ETH validate the most transactions.

Obviously, the network still has a ways to go before it can deliver on its fee reduction promises. Nonetheless, today’s price performance is a strong indicator that many people are using the Etherreum network.

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