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Ethereum rates soar and reach almost 570 Gwei

Ethereum
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Ethereum rates soar. As a result, Ethereum rates soar, and reached a new historic high on Monday (4): $ 1,771,317.01. This is an increase of almost 400% since the 1st of January. 

This increase is directly impacting transaction costs. As the IntoTheBlock analytics platform reported, the new fee record resulted in a substantial increase in the daily cost of gas to 569.31 Gwei.

It is worth mentioning that, as of today, the second-largest cryptocurrency in market value rose to $1,162. This is its highest value since February 1st, 2018.

At the time of writing this article, the cryptocurrency is valued at $1,025. This figure corresponds to an increase of about 20% only in the last 24 hours.

  

Ethereum gas on high

Ethereum rates soar. As a result, Ethereum rates soar, and reached a new historic high on Monday (4): $ 1,771,317.01. This is an increase of almost 400% since the 1st of January.

Gas is the amount charged each time a smart transaction or contract is executed on Eth. These tariffs, paid to miners, increase as the demand on the Eth network grows.

READ more:  Bitcoin Explodes Above $50,000 as Total Market Cap Adds $100B In 24 Hours

According to Glassnode, Eth miners raised $898,000 in fees in just 1 hour, setting a new record. 

In parallel, these fees also make transactions on the Ethereum blockchain more expensive. On Twitter, Etherscan.io showed the correlation between the price of ETH and the costs of fees:

Reasons behind the higher rates

According to Charles Storry, cofounder of PhutureDAO, one reason behind the higher rates is the growth of the decentralized finance (DeFi) market.

This is because many DeFi protocols are run on the Ethereum network. The Uniswap protocol, for example, is the second-largest “consumer” of Ethereum’s Gas, behind Tether (USDT).

“With the current growing interest in decentralized finance, the network is reaching its highest levels of activity. One of the side effects of the network’s activity levels is the high gas rates that revolve around each transaction, ”noted Storry.


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Disclaimer:

The information expressed in this article is solely those of the author and do not necessarily reflect the vies of CryptoDeFinance.  Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment.
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Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
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