According to YCharts, fees on the Ethereum network averaged $ 10.20 per transaction on Sunday. The network’s fees rose only twice in 2020, averaging $ 12.54 for a short time in early September. Towards the middle of the same month, they rose again to $ 11.69.
The transaction companies on the Ethereum network had to pay high fees over the past year, partly due to the DeFi (decentralized finance) boom, which saw the blockchain being used for various lending and income farming activities. At times, the high fees made it difficult for contributors to participate in DeFi activities.
“#Ethereum gas charges are rising again, making #defi basically unusable,” tweeted crypto YouTuber Lark Davis on Monday.
The network’s traffic tolerance has been a problem for years. Transactors suffered huge delays and fees near the last big Crypto Bull Run when a cat-centric blockchain game called CryptoKitties gained popularity.
Ethereum recently embarked on its long-awaited network upgrade journey called Ethereum 2.0, moving the network to a proof-of-stake mining algorithm. The upgrade is expected to massively scale Ethereum, although it will likely take years to fully complete the process.
In the past 24 hours, Ether (ETH) rose from $ 830 to $ 1,161.