Key Points
- Ethereum’s on-chain activity and transaction fees are increasing due to a rise in trader involvement on DEX.
- Notable growth in active addresses, DEX volumes, and ETH staking are contributing to the surge in transaction fees.
Ethereum [ETH], a leading blockchain platform for smart contracts, is experiencing a surge in on-chain activity.
This increase is leading to higher transaction fees, particularly as more traders utilize decentralized finance (DeFi) platforms that depend on the Ethereum network.
ETH’s Upward Trend
ETH’s value has been rising, reflecting the broader crypto market’s optimism for a bullish final quarter.
As Ethereum gains momentum and sees large transaction volumes, the escalating fees pose concerns, especially with the increasing participation of traders.
The surge in decentralized exchange (DEX) volumes and the heightened usage of the ETH network are believed to be significant contributors to these rising transaction fees.
Active Addresses and DEX Volumes
An important on-chain metric contributing to the rising fees is the analysis of Ethereum addresses.
There has been a rapid increase in daily active addresses, showing a 29% growth, while new addresses have risen by 43%.
The total volume of ETH traded on DEXs in the last 24 hours stood at $978 million, marking a 2.13% increase.
The monthly volume bars also indicate steady growth in ETH trading across DEXs.
Recent changes in ETH staking flows are also contributing to the increased fees.
During the bear market, outflows dominated the staking landscape. However, there has been a shift, with outflows now balancing inflows, signaling renewed interest in staking.
The total staked ETH has now returned to its all-time high after a sharp decline during the previous market crash.
Ethereum’s current price trajectory, along with rising transaction fees, reflects the increased activity on its network.
Key on-chain metrics, such as active addresses, DEX volumes, and ETH staking, all play a role in the recent price movements and fee hikes.
With the broader crypto market anticipated to boom in the final quarter, Ethereum could continue to see higher prices, even as users grapple with increasing fees.
