Ethereum, the second largest crypto asset by market cap, has gained 27% against the US dollar in the last two weeks, while the average and median size gas fee for the network has increased by over 50%. On the first day of 2023, the average fee to use ether was about $2.93 per transfer; today the average cost is $4.52 per transfer, 54% higher.
On-chain transaction costs have increased
due to the rising value of Ethereum.
SendingEthereum (ETH)has become more expensive as the value of the crypto asset has risen significantly over the past 14 days. As of this writing, Ether is trading at $1,542 after reaching a high of $1,606 per unit during the same 24-hour period on January 18, 2023.
As Ethereum’s value in US dollars rose, so did the cost of moving Ether and countless ERC20 tokens. According to data from bitinfocharts.comon January 1, 2023, the average Ether gas fee was $2.93 per transfer; 18 days later, the average transfer fee for Ethereum is 54% higher, at $4.52 per transaction.
Bitinfocharts.com’s median size ethereum fee chart highlights a similar pattern: 18 days ago, on the first day of 2023, bitinfocharts.com’smedian ethereum fee chartshowed that the cost of sending an Ethereum was about $1.06 per transmission.
On Wednesday, the same chart showed that the cost had risen to $0.0013 . Using the current ether exchange rate, it has risen to 0.0013 ETHor roughly $1.96 per transfer. This means that the median ether fee has jumped 84% since January 1. Additionally, the etherscan.io “gas tracker” also shows an increase since the beginning of the year, although gas measurements are usually quoted at a much lower rate.
That day, the web portal’s rate tracker shows that high priority ether gas rates are around$0.30or 20 gwei per transfer. 18 days later, high priority fees are still 20gwei orETH is $1.14per transaction. which is an increase of about 280%; on January 1, the cost to trade on Oppensea was an estimated $1.12 per transaction; today it is up to $3.99.
Swaps on decentralized exchange (dex) platforms were $2.87, but have now risen to $10.28 to trade on a dex like Uniswap.46} Sending an ERC20 token like USDTor USDC, the sender trades costs about $0.84 per transaction, and it is now about $3.02 to send an ERC20.
Additionally, the cost of layer-two (L2) transactions is also rising: three days ago, on January 15, 2023, Bitcoin.com News reported a rise in Arbitrum and Optimism transactions; Dune Analytics’datashows that on that day, Arbitrum network transfers were about $0.101 per transfer and today’s fees are about $0.188 per transfer.
Similarly, Optimism network transaction costs were $0.1410 per transfer three days ago, and on January 18 the cost to move coins on Optimism on the L2 chain was $0.3039 per transaction. The recent rise in higher ethereum fees broke the Ethereum network’s long monthly record of low fees.
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