Ethereum Network Congestion Caused Daily Transaction Fees to Skyrocket
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 DeFi platform Compound reached their highest amount ever on Mar. 12, with $4.19 million ETH cleared over the 24-hour period.
Transaction fees on the Ethereum network, according to available data, are now at $0.015 for a standard transaction
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