Ethereum Gas Fees Increase 498% In Two Weeks As Network Activity Increases – Report

Transaction fees on the Ethereum network have increased significantly over the past two weeks following an increase in on-chain activity, according to Coinbase.

According to Coinbase's weekly report published on September 27, between September 16 and September 26, average Ethereum gas payments were 498% higher than the monthly average, and the average transaction price rose from $0.09 at the beginning of the month to $1.69. .

According to Coinbase analysts David Dung and David Han, the increase in transaction fees is due to the increase in onchain activity on Ethereum.

“There was no single driver of increased activity,” the analysts said, highlighting several contributing factors, adding that Ethereum decentralized exchange (DEX) volume increased slightly, up 9% for the week.

“USDC deposit rates on lending platform Aave increased slightly from 3.5% to 4.5%, reflecting a modest increase in leverage.”

In addition, total Ether transfer volumes rose by 17% in the week, corresponding to higher transaction fees, the analysts added.

The increase in onchain activity is evident in gas payments, which according to blockchain efficiency firm Gashawk, have risen to 40 gwei multiple times in the past week.

“ETH gas rose above 30-40 gwei and then returned to 5-10 gwei, several times in the last 7 days.

Increased onchain activity and transaction fees led to an increase in total Ether fees burned daily, which rose more than 900% to 2,097 ETH between September 14 and September 24, according to CryptoQuant data.

Meanwhile, data from Dapradar shows that DApp volumes have doubled in the last 24 hours, rising 97% to $3.6 billion. At the same time, NFT volumes also increased by 17%, which reinforces the increasing activity on the Ethereum blockchain.

Ether price breaks above key indicator.

From a technical perspective, the price of Ether (ETH) has broken above the relative strength index (RSI) retracement line that started at the March multi-year high of $4,093, indicating a potential reversal in ETH's short-term momentum.

Despite the positive momentum shift, Ether still remains locked below the 100-day and 200-day exponential moving averages (EMAs), which are currently at $2,770 and $2,864, respectively.

These EMAs will continue to act as barriers and bulls will be asked to flip to support to ensure a sustained recovery.

Meanwhile, Ethereum investment products broke a five-week negative streak by posting an inflow of $87 million, “the first measurable inflow since early August,” according to CoinShares' latest report. This was largely driven by inflows into spot Ethereum ETFs, which recorded $58.7 million in inflows on September 27, according to data from Farside Investors.

BlackRock's ETHA continues to see positive inflows, with earnings of $11.5 million as of September 27, as net income exceeds $1 billion.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.