Key Points
- Ethereum’s average transaction fee has seen a rapid increase recently.
- Despite the fee hike, Ethereum’s daily activity and network growth have not seen a comparable rise.
Ethereum’s average transaction fee has seen a significant uptick in recent weeks. This increase comes despite the fact that the daily activity and network growth for Ethereum have not kept pace with the fee increase.
Ethereum’s Bullish Market Trend
Ethereum’s market has been positively influenced by the recent surge of optimism in the crypto market, triggered by Bitcoin’s rise beyond the $64k mark. This upward price movement has sparked hope in the market, as this price point has previously acted as a significant resistance level for Bitcoin.
The Ethereum average fee rose nearly twelve times compared to late August. However, the increase in price might have lessened user dissatisfaction. Despite the positive price trend, the decline in Ethereum’s market dominance is a cause for concern.
Increasing Ethereum Fees
Crypto data analytics platform Santiment reported that Ethereum’s average fee has steadily risen over the past month. During this same period, Ethereum’s price has also risen by 17.69% since the low point on September 16th.
The steady price increase may have diverted attention from the rising fees. However, when comparing the average fees of $0.29 on August 31st to the fee of $3.61 on September 24th, there is a clear upward trend.
In recent days, the fee has once again decreased to an average of $2.18. Meanwhile, the weighted social sentiment has shifted into positive territory. This is beneficial for Ethereum investors, particularly as the asset nears the key resistance zone of $2.8k-$2.9k. Social media volume has also seen a slight increase in September, marking a small win for the bulls.
Network Activity and Transaction Count
The network activity has not seen a significant increase to explain the rising network fees. Although the transaction count has increased by approximately 10%, the daily active addresses and network growth have been on a downward trend for the past three weeks.
It is possible that the base fee was higher in comparison to August due to a rise in activities such as NFT minting. Alternatively, users might be willing to pay higher priority fees to expedite their transactions.
