Ethereum fees began to rise again due to network congestion

by in Cryptocurrency News

Ethereum

Ethereum transaction processing fees began to rise again at the end of this week. That is due to a surge in blockchain user activity, which caused its overload.

According to the BitinfoCharts service, the number of transactions in the network jumped to 1.2 million per day. Earlier, a similar trend was observed in September-October against the backdrop of rapid growth in the capitalization of the decentralized finance market DeFi.

The transaction cost on Ethereum is now 0.0095 ETH ($ 4.68). The day before, the average commission reached $ 7.4.

Analysts believe that the surge in transaction activity was due to the drop in the price of ether. The largest altcoin on the night of Friday, November 27, fell to $ 520. ETH suffers losses along with Bitcoin, which fell below $ 17,200.

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Operating fees are now well above levels seen in early 2020. For example, in January, the commission was only 10 cents.

At the peak of trading in the DeFi market in mid-September, Ethereum fees reached an all-time high (up to $ 15).

It was at this time that the crypto community began to require developers to update the blockchain (ETH 2.0) as soon as possible to improve its bandwidth. That will minimize the risks of new network congestion.