The Ethereum network recently recorded a substantial rise in transaction volume, leading to the highest gas fees observed in several months. Even with a minor dip in Ethereum’s price over the last day, the network’s transactional activity has escalated since February’s outset, intensifying the cost to process transactions.
Economic Activity Jolts Network Fees
The network’s economic activity has seen a sharp increase, with the seven-day moving average of economic throughput climbing to over $3.55 billion, a jump of 15% since the start of February. As a result, average gas fees over the past week have spiked above $11, a price point not experienced since the previous December.
Ethereum NFT Market Fuels Fee Surge
On February 9th, total Ethereum gas fees reached 854 Ethereum, as documented by YCharts. The swell in fees can be largely attributed to a recent surge in Ethereum-based NFT transactions. NFT transaction volume has notably hit a year-high of $147.29 million in a week, underscoring a robust NFT market presence on the network.
This heightened demand for transaction processing due to the burgeoning NFT sector has contributed significantly to network congestion. This, in turn, has impacted gas fees, making it an expensive affair for network users and highlighting the critical need for solutions to Ethereum’s scalability issues.
Despite the challenges, Ethereum’s value has managed to surpass a notable resistance threshold of $2,500, currently trading at around $2,626. Analyst Michael van de Poppe suggested that Ethereum’s price might soon approach the $2,700 mark, indicating a bullish outlook for the cryptocurrency.