The cost of transacting on the Ethereum network has gone up by 3,500% on average, making it more expensive to send and receive transactions and use decentralized applications and decentralized finance (DeFi) protocols.
According to BitInfoCharts, at the beginning of the year, the average transaction fee paid to move ether on the blockchain was $0.084, but with the growing interest in decentralized finance and the cryptocurrency’s price rising, the average fee is now above the $3 mark.
Ethereum transaction fees are measured in Gas, and used to pay for operations on the cryptocurrency’s network. These don’t just include regular transactions, but also interactions with smart contracts and decentralized applications. Fees going up means that using Ethereum projects is becoming more costly.
Data from Ethereum blockchain explorer Etherscan shows that the network has been using over 70 billion Gas per day on transactions, with the total number of transactions being confirmed on the network surpassing one million per day since late June, coming close to figures seen in January 2018, when ETH’s price hit a new all-time high above $1,400 per coin.
Fees on the network have been going up partly because of increasing interest in the decentralized finance space, which now has nearly $5 billion worth of cryptoassets locked in it, up from less than $1 million earlier this year.
The growing interest has been such that cryptocurrency trading platforms have rushed to list DeFi-related tokens. OKEx, for example, has listed the Aragon (ANT) token earlier today, and the Aave (LEND) token earlier this week. Read More