At the end of last week, abnormally high <a href="https://www.cryptoknowmics.com/crypto/ethereums-daily-transaction-fees-begin-to-surpass-bitcoins/">commissions</a> were recorded on some blocks of the Ethereum network. Sometimes the cost was more than USD 30, and even USD 40, according to Coin Metrics analyst Nate Maddrey, who drew attention to the fact on 22 November.

Maddrey made a posting on his Twitter account in which he also pointed out that recently, the blocks of the Ethereum network have almost filled up. In that sense, he shared a chart of Coin Metrics in which you can see the markers that represent the gas used per block during the three days before the date of his report. Thus, it can be observed that most of the blocks were just below the top.

Some analysts believe that there may be several reasons for such abnormal commissions. One of these is the recent increase in mining complexity associated with the so-called Ice Age (the culminating stage of the transition from Work Test to Participation Test as a consensus mechanism). Although its activation is expected to be delayed again, it takes longer to generate ETH blocks.

<a href="https://twitter.com/natemaddrey/status/1197912461648826368">https://twitter.com/natemaddrey/status/1197912461648826368</a>

In this regard, an <a href="https://etherscan.io/chart/difficulty">Etherscan</a> graph represents how the mining difficulty has been increasing since May 2019, with an average that has remained above 2,400 TH.

Another possible reason could be related to the increase in decentralized finance applications (DeFi). The price of Ethereum fell from USD 185 to USD 145 during the previous week, resulting in the liquidation of leveraged positions. The administration platform for financial protocols, DeFi Saver, recorded the event on its Twitter account.

<em>More than 200 Collateralized Debt Position (CDP) settlements occurred in the last 24 hours. Our automation system has maintained more than 70 CDP in SCD (Single Guarantee Dai) and MCD (Multi Collateral Dai) with more than USD 3 million in collateral throughout the accident.</em>

<em>DeFi Saver.</em>

It is also possible that the increase in the popularity of the Gods Unchained game-driven ERC-271 token, as shown by Coin Metrics in its 26th report, showed that card game activity increased considerably, recording a volume of almost 500,000 daily transfers of its non-expendable tokens (NFT). These collectible tokens have also caused congestion on the Ethereum network in the past.

CryptoNews also reported last week that tether remains the primary consumer of resources on the Ethereum network. A study revealed that anchored cryptocurrencies or stablecoins, especially tether (USDT) had driven the growth that the network has experienced in the last two years, taking into account that in the chain of blocks are recorded 2 to 3 times more transactions in USDT than in the native cryptoactive ether.

Fees in the Ethereum network exceeded USD 30 for three days

I am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.

Fees in the Ethereum network exceeded USD 30 for three days

Top Picks