Ethereum Network Demonstrates An Abnormal Fees Increase

Last day, the abnormal high fees were observed in certain blocks of the Ethereum network. In some found blocks, this value exceeded $ 30, and in a separate case was around $ 40.

In particular, researcher Nate Madry, who drew attention to the fact that when trying to send a transaction, the recommended fee was more than $ 40. In other individual blocks, the fees exceeded $ 30.

1/ Just tried to make an Ethereum transaction and suggested fees were over $40.

Looks like mean block fees shot up to over $30 for some blocks earlier today.

Data via @coinmetrics Realtime Network Data pic.twitter.com/cddsj4OtkE

— Nate Maddrey (@natemaddrey) November 22, 2019

The analyst also notes that recently the blocks in the Ethereum network have been almost filled.

2/ It also looks like recent blocks have been clogged.

The markers on this chart represent the gas used per block for every block over the last 3 days. Most blocks over the last 12 hours have been close to full.

Data via @coinmetrics Realtime Network Data pic.twitter.com/4xd4OKCBxJ

— Nate Maddrey (@natemaddrey) November 22, 2019

However, there can be several reasons for such an abnormal size of fees. Among them are the recent increase in mining complexity regarding the function of the so-called “ice age”. Although its activation is expected to be delayed again, the generation of ETH blocks may become slower.

Another possible reason is decentralized finance (DeFi) products. The fall in the price of Ethereum from $ 185 to $ 145 during the last week led to the liquidation of credit positions. At the same time, DeFi-contracts can be motivated to pay higher fees for necessary actions.

⚠Over 200 CDP liquidations happened in the last 24 hours.⚠️

Our Automation system has kept 70+ CDPs on both SCD and MCD with over $3Million worth of collateral safe🛡️ throughout the crash. Enable at: https://t.co/HG8vTdnVfl

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— DeFi Saver (@DeFiSaver) November 22, 2019

It is also possible that the launch of ERC-271 tokens for the Gods Unchained collectibles market had an impact, that took place on Thursday.

Note, the main energy consumer on the Ethereum network remains the stablecoin Tether. Earlier this week, the glassnode notes that USDT’s total transaction volume exceeded $ 100 billion, more than 6,000% from the beginning of the year.

#Tether adoption on #Ethereum still on the rise: $USDT cumulative on–chain volume just surpassed 100 billion USD.

That’s an increase of more than 6000% since the beginning of 2019. pic.twitter.com/eoPKG9pEfq

— glassnode (@glassnode) November 19, 2019

In general, compared with the peak values ​​in May of this year, when the load on the Ethereum blockchain at certain times exceeded 94%, now the network is used less actively – an average of 84%.

Recall, earlier in November, Bitcoin developer Udi Wertheimer said that over the year, Ethereum will cede TRON the status of a leading platform for decentralized applications.

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