Ethereum Network Congestion Caused Daily Transaction Fees to Skyrocket
ethereum-network-congestion-caused-daily-transaction-fees-to-skyrocketEthereum Network Congestion Caused Daily Transaction Fees to Skyrocket Daily Ethereum network fees jumped to $564,000 on Mar. 12, the highest amount since February 2019. ETH liquidations on Compound reached their highest point ever, with $4.19 million ether moved in 24-hours.
Daily transaction fees on Ethereum’s network ballooned to $564,000 last Thursday amidst the sudden market collapse for cryptoassets.
According to a report by The Block, Ethereum’s network accumulated roughly $564,000 in transaction fees over the course of March 12, when the prices of most cryptoassets start plummeting.
Users were forced to pay a premium to transact in ether, as market congestion led to a spike in gas fees. Ethereum relies upon gas fees paid in gwei to conduct transactions, with the average cost jumping from $0.16 on Mar. 11 to $1.04 on Mar. 12. Prices subsequently fell over the next several days to return to their current baseline of $0.09 per transaction.
The report claims the spike in transaction costs coincided with a substantial amount of liquidations in ether and other cryptoassets amidst the market panic. Ethereum’s daily transaction fees ballooned to surpass even bitcoin’s $298K paid on Mar. 12, making it the most expensive day for ether users since Feb. 2019.
The report also claims that ethereum liquidations made on the...