Originally published on: September 30, 2024
The Ethereum network has experienced a significant increase in transaction fees in the past two weeks as onchain activity hit record highs, according to a recent report from Coinbase.
During the period of September 16 to September 26, the average Ethereum gas fees soared by a staggering 498% compared to the monthly average. The median transaction cost skyrocketed from $0.09 to $1.69 at the start of the month.
The surge in transaction fees on Ethereum was primarily driven by a spike in onchain activity, according to Coinbase analysts David Duong and David Han. They noted that various factors contributed to this increase, including a rise in decentralized exchange (DEX) volumes by 9% week-on-week.
Moreover, total Ether transfer volumes surged by 17% week-on-week, aligning with the higher transaction fees observed during this period.
The escalating onchain activity is reflected in the rise in gas fees, which reached 40 gwei multiple times over the last week, according to data from Gashawk, a blockchain efficiency firm.
The surge in onchain activity and transaction fees led to a remarkable increase in daily Ether fees burnt, jumping over 900% to 2,097 ETH between September 14 and September 24, as per CryptoQuant data.
In addition, DappRadar data revealed a nearly 100% increase in DApp volumes over the last 24 hours, amounting to $3.6 billion. NFT volumes also saw a 17% rise on the day, indicating a growing level of activity on the Ethereum blockchain.
Technically, Ether (ETH) has broken above its relative strength index (RSI) downtrend line from March’s high of $4,093, signaling a potential shift towards bullish momentum in the short term.
While this shift is positive, Ether remains under the 100-day and 200-day exponential moving averages (EMAs) at $2,770 and $2,864, respectively. Bulls will need to turn these EMAs into support to confirm a sustainable recovery.
On the investment front, Ethereum products saw inflows of $87 million after a five-week negative streak, marking the first significant inflow since early August, according to a report by CoinShares. Spot Ethereum ETFs led with $58.7 million in inflows on September 27.
BlackRock’s ETHA product also saw positive flows, with $11.5 million in inflows on the same day, pushing its net inflows above $1 billion.
This article is not intended as investment advice. Readers are advised to conduct their own research before making any financial decisions.
