Not only the price of ether (ETH) is experiencing an unprecedented rise and is setting price record after price record, the transaction costs on the Ethereum network, the so-called gas fee, are rising with this. During the past week, the price of this gas fee has increased by 470% and it does not appear that there will be any delay.
According to Bitinfocharts, the average transaction fee on the Ethereum network was about $ 12 last week. Today, just a week later, this is already at $ 70! Almost doubling the previous price record sometime in February. Then the gas fee peaked at just $ 40.
The Ethereum gas fee is used for a large number of transactions on the Ethereum network. For example smart contract interactions or token swaps. A well-known decentralized token swap exchange is Uniswap. On Uniswap, the average price of a trade is over $ 200!
The Ethereum gas fee has meanwhile reached astronomical proportions, but what is the reason for this? According to Trustnodes, this has everything to do with the mania surrounding the meme coin Dogecoin (DOGE). A new dogecoin clone has also entered the market. Shiba (SHIB). Just like dogecoin, the interest in this meme coin is high. Trustnodes states that the great interest in these types of coins creates a kind of blockage on the network that causes transaction costs to skyrocket.