- Ethereum transaction fees have reached a new all-time of $23 on average in terms of dollar value.
- ETH miners have consequently earned over $22.75 million in fees over the last 24 hours.
- The ecosystem’s metrics are largely driven up by key industry leaders, experts noted.
The average(ETH) transaction fee broke a new all-time high today, reaching over $23 per transaction, according to crypto metrics platform Blockchair. This means that it’s more expensive than ever to use the Ethereum blockchain for making transactions and using decentralized applications (dapps).
The rising fees have made it more expensive to use DeFi apps, such as Uniswap, which tend to charge even higher fees for making swaps between different coins. Plus, transactions that use Ethereum-based coins, such as DAI, tend to have higher transaction fees than sending Ethereum itself.
I’ve easily paid 5k in gas fees this week. Disaster.
— The Wolf Of All Streets (@scottmelker) February 4, 2021
The spike in transaction fees has been largely caused by the rising price of ETH, which has brought in a lot more demand for the cryptocurrency. The price of ETH itself set another record by exceeding $1,688 today—its all-time high so far, CoinGecko’s data shows.
“Transaction fee volume on the Ethereum chain is reflective of a wide range of activities—from buying and selling of the ETH token itself to the infrastructure it provides,” Martin Köppelmann, CEO of permissionless decentralized exchange Gnosis, told Decrypt.
He added, “In fact, many of the top projects run on the Ethereum chain so the fees pictured for Uniswap, Sushiswap, Compound, Aave, Balancer, Curve, etc. are actually reflected in daily Ethereum fee volume.”
Following the surge in both transaction fees and ETH’s price, Ethereum miners have similarly earned over $22.75 million in fees over the last 24 hours—over four times more than Bitcoin (BTC) miners ($5.116 million), according to tracker CryptoFees.info.
On average, both Ethereum and Bitcoin miners are currently earning $15.81 million and $4.485 million per day, respectively. Notably, fees currently make up roughly 50% of ETH miners’ revenue, with the second half being block rewards.
Speaking to Decrypt, Alexi Lane, spokesperson of analytics platform Ethplorer, noted that skyrocketing Ethereum transaction fees and miner revenues can be attributed, for the most part, to several key platforms in the ecosystem.
“Behind this, key industry leaders are spending gas which drives these figures up to another level. Uniswap, TetherUSD, 1inch Exchange and USDC with their heightened activity, have all played a part in this,” Lane told Decrypt.
He noted that Uniswap and TetherUSD alone spend roughly 30% of total gas on Ethereum, and this figure shows how just a few projects can impact the whole sector.
Ethereum miners earn record revenues
However, one group of people benefits from these high fees. In January, ETH miners saw revenues that were twice as high as the previous month.
A staggering $325 million in transaction fees were paid on #Ethereum in January, almost doubling the amount of its previous record month (Sept 2020).
In comparison: #Bitcoin January fees were $114 million (2.8x difference).
— glassnode (@glassnode) February 2, 2021
“A staggering $325 million in transaction fees were paid on Ethereum in January, almost doubling the amount of its previous record month (Sept 2020),” Glassnode tweeted yesterday, adding, “In comparison: Bitcoin January fees were $114 million (2.8x difference).”
But are these fees a good sign of Ethereum’s growth—or a stumbling block?
Ethereum Whales with 1 to 10 Million ETH Add 13.9% Coins As Ether Approaches ATH
Large holders of Ethereum have been buying large amounts of Ether on a steady basis since August, an analytics report says
Top Ethereum wallets have been adding Ethereum steadily since August and keep doing so even as the price is approaching the all-time high reached in May.
Top ETH whales buy another 13.9% of Ether
Santiment on-chain data provider has tweeted that Ethereum wallets holding from 1 to 10 million Ethereum have been purchasing massive lumps of Ether in the past three months.
Over this period, they have acquired 13.9% of the Ethereum supply and keep adding more, even though the Ether price has soared to the $4,200 zone, inching closer to surpassing the May all-time high of Ethereum.
🐳 #Ethereum's top addresses have accumulated $ETH steadily since early August, and it's no surprise to see the #2 asset approaching an #AllTimeHigh of its own. In the past 10 weeks, addresses with 1M to 10M $ETH have accumulated 13.9% more to their bags. https://t.co/OUccwGBDKC pic.twitter.com/tJpZiN5B9Y— Santiment (@santimentfeed) October 21, 2021
Non-exchange ETH whales hold 5x more ETH than whales on exchanges
According to a Santiment tweet published earlier in October, the ratio of non-exchange and exchange crypto whales and their ETH holdings now constitutes 5:1.
Crypto whales now hold five times more Ethereum on non-exchange wallets than other whales hold on exchange addresses.
The ETH holdings of the former now total 22.91 million Ethereum compared to only 4.6 million ETH stored on addresses based on crypto exchanges.
Besides, in July, the top 10 Ethereum addresses acquired big amounts of ETH and, back then, they held 20.58% of the second-largest cryptocurrency.
In the meantime, as reported by U.Today earlier, ETH exchange supply has been declining substantially as investors have been withdrawing Ether to cold wallets for long-term storage. This may be one of the main reasons for the growth of the Ethereum price.
Ethereum inches closer to its May peak
On May 12, Ether managed to reach a historic rise, soaring to a $4,362 all-time high. Since then, ETH has dropped twice to the $1,780 low (in June and July). In early August, it surpassed the $3,000 level after the implementation of EIP-1559 (also known as the London hardfork) on Aug. 5.
At the end of last week, Ethereum recovered the $4,000 line and, on Wednesday, it surged to the $4,239 price mark, following Bitcoin hitting an all-time high of $66,930.
Along with the EIP-1559 upgrade, a burning mechanism for Ethereum was rolled out for ETH fees. Since then, large amounts of Ether have been destroyed, which makes the ETH supply smaller and more deflationary, helping its price to rise.
As of Oct. 11, more than 500,000 ETH have been destroyed. Over the past 30 days, around $824 million worth of Ethereum fees have been burned.
Ethereum on the Brink of Catching Fire, According to Analyst Justin Bennett – Here’s His Target and Timeline
Widely followed crypto analyst Justin Bennett thinks Ethereum (ETH) is gearing up for another major rally that could launch the crypto asset by nearly 400%.
In a series of tweets, Bennett explains how Ethereum could rally to $20,000 by January 2022 if Bitcoin (BTC) allows for the right market conditions.ADVERTISEMENT
“If $BTC breaks $65,000 without a significant pullback first, $ETH probably matches it with a close above the May trend line.
Would put ETH on track for $20,000 in January.
This is my trigger to ape in more than I already am.”
Bennett thinks that a $20,000 top for ETH is more likely given that too many traders are calling for a high of $10,000. He contends that most traders underestimate the rush of capital that can flow in during a parabolic run.
That's one reason I think $20k happens.
Every time I post this chart, I get multiple comments from people telling me ETH tops at $10k.
Parabolic moves tend to last longer and push prices higher than most expect.
Time will tell.— Justin Bennett (@JustinBennettFX) October 19, 2021
Despite his bullish thesis, Bennett warns traders about a potential dump in the short term that could wipe out overleveraged traders.
“Don’t be surprised if we get a flush this week, potentially toward $53,000 BTC, then all-time highs.
Everyone, including me, is hyper bullish right now, and rightfully so. But that’s when liquidations tend to occur.
Sunday’s $58,900 low is the proverbial line in the sand.”
In response to another crypto trader’s bull run hypothesis, Bennett gives his outlook on the market cycle, expecting a peak Bitcoin price between $207,000 and $270,000 followed by an 80% correction.
Agree with all points except 1, 4, and 8.
1) $BTC ATH probably takes longer than most expect
4) Fibs point to $207k – $270k
8) $50k – $60k bear market low
On point 8, diminishing corrections for a maturing market. 94%, 87%, and 84% so far in order. Probably 80%ish next.— Justin Bennett (@JustinBennettFX) October 19, 2021
The Essence of Ethereum and Its Work Process
Frequently, Ethereum is considered a well-known cryptocurrency, but it is in second place. Bitcoin is always a leader in the cryptocurrency world. In contrast to it and various virtual cryptocurrencies, Ethereum always inclines to be a simple means of interchange and reserve. It, like a decentralized calculating net, has been constructed in the basement of the technology of blockchain.
Every single user has straight access to the fit maintenance of digital currency and data in the contribution of Ethereum. Moreover, it does not pay attention to the client’s origin or location that makes it available for transactions on more platforms from an online Bitcoin casino to booking platforms.
All transactions of Ethereum are confirmed and noted in the public ledger that is distributed to all participants of this network. With the help of this method, all participants possessing identical copies of this ledger, are allowed to verify all past deals. Cryptography is used in all blockchain transactions for a purpose of verification or saving net reliability. Besides, every single partaker of the Ethereum net is remunerated with crypto badges by the name of Ether.
In the case of purchase and sale of goods and services, these tokens are regularly made use of. Recently Etherium became a factually dangerous investment and gained rapidly at price. One more exception about this type of crypto is that partakers are able to build an application that is purposed to function on the software of the blockchain. In addition, personal data can be saved and transferred in these applications or control sophisticated financial deals.
Fulfilling the computations is the basic uniqueness in relation to Bitcoin which is the fraction of the production process. All these computational capabilities transform a store of interchange to an apparent checking out store of information and place of decentralized global calculating.
The Difference and Main Specifications Between Ether and Ethereum
As we noted above, Ether is digital currency and can be used in financial deals in the place of investing or as a value store.
Ethereum is a net of blockchain which except for saving and transforming Ether, offers a number of various functions also from simple fund movements to total transactions processing on that web. Ethereum is designed for exploitation of decentralized apps, as well which is beneficial for users to make use of apps and control over their information.
The most curious is when Ether and Ethereum make supposed smart contracts where both parties agree to supply goods or services later on.