Simon Ng Rapid Surge in Ethereum Transaction Fees, Soaring by 219% in Less Than a Month
In the recent span of three weeks, the expenses associated with conducting bitcoin (BTC) transactions have witnessed a steep ascent, reaching a notable pinnacle of $15 per transaction just a mere three days ago. Simultaneously, the cost of executing Ethereum (ETH) transactions has experienced a substantial surge. From October 22 to November 12, 2023, the average transaction fee for Ethereum transactions has surged by a staggering 219%, surging from $2.08 to a current rate of $6.64 per transaction.
Parallels Between Ethereum and Bitcoin Transaction Expenses
The remarkable increase in Ethereum (ETH) fees echoes the upward trend observed in Bitcoin’s transaction fees, primarily driven by the mounting costs associated with the gas required for facilitating digital currency transfers within this timeframe. Presently, the average cost for an Ethereum transaction stands at $6.64, with the median fee resting at 0.0013 ETH, equivalent to $2.70 per transaction.
Notably, Ethereum’s cost for transferring Ether closely aligns with that of Bitcoin’s transfer fees, with both the average and median charges for ETH transactions mirroring those of Bitcoin. However, a notable distinction emerges when engaging in various operations on the Ethereum blockchain, particularly when interacting with smart contracts.
Varied Costs for Ethereum-Based Operations
For instance, the cost of exchanging an ETH-based asset on a decentralized exchange (DEX) platform can encompass a fee ranging from $27.77 to $28.50 per transaction. Similarly, the expenses associated with conducting non-fungible token (NFT) transactions exhibit fluctuations, ranging between $46.93 to $48.16.
On Sunday, November 12, the expense involved in transferring assets across different blockchain networks via bridging was estimated to be in the range of $8.93 to $9.17. During the period from October 22, 2023, to November 11, 2023, Ethereum has consistently processed an average of approximately 1,071,448 transactions daily.
BTC Still Dominates Ethereum in Key Metrics
In the ongoing comparison between Ethereum (ETH) and Bitcoin (BTC), it is noteworthy that BTC maintains its lead in market capitalization, daily trading volume, and the 24-hour fees collected by validators, surpassing what BTC miners earn. Regardless of the perspective taken, transactions executed on these two prominent blockchains, leading in terms of market capitalization, remain notably more costly than their counterparts within the Layer 1 (L1) blockchain ecosystem.
The rising cost of transacting with Ether raises pertinent questions and concerns within the crypto community. Your thoughts and insights on this matter are welcome in the comments section below.
