Ethereum Fees Is At An All-Time High Again - Know Why?

Ethereum Fees Is At An All-Time High Again - Know Why?

2022-01-10 | Daniel Smith

Ethereum Fees Is At An All-Time High Again - Know Why?

Notwithstanding shedding more than 50% of its worth from September, Ethereum network fees are at an all-time high, as per Glassnode statistics, with the Overall Fees Paid measure reaching a one-month high.

According to research, the sum of fees paid on the market peaked in December and is on track to shatter the previous month's benchmark yet further. The fast rise in prominence of the NFT business is most certainly to blame for the rise in the sum of fees paid.

NFT project activity on the Ethereum network got off to a fast launch in the current year, with around 250,000 transactions. In reality, 2022 has reportedly surpassed the 240,000 daily transaction mark set in 2021 September.

Furthermore, the prominence of Chinese NFT projects has skyrocketed, according to the NFT community. Regardless of the fact that crypto and mining are illegal, the nation believes NFTs to be legitimate and is also prepared to offer its very own Metaverse initiatives to the globe.

The costs associated with Ethereum

The quantity and number of fees collected on the Ethereum blockchain have long been a source of debate in the cryptocurrency industry because the network might eventually charge over $100 for a single transaction.

Owing to current congestion difficulties, developers have devised Layer 2 solutions that enable transactions to be completed quickly and at a lower cost during periods of high main network traffic. However, because of their inconvenient nature, L2s are only used on the Ethereum network amid long-term traffic situations.

The Ethereum main network's gas fee has remained at 120 Gwei that is greater than typical.

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