Ethereum fees in January soar by almost 400%

Since January 1, 2021, fees on the Ethereum network for processing transactions have increased by almost 400%.

Such a jump is directly related to the rise in price of the largest altcoin ether (ETH). The coin topped $ 1000 for the first time since January 2018.

On Friday, January 8, ETH is holding around $ 1,160. Altcoin capitalization has exceeded $ 133 billion. The rise in cryptocurrency prices has led to a surge in the activity of network users. As a result, due to the record high demand for transaction processing, fees began to rise.

The average daily cost of commissions came close to $ 900,000 - this is the highest figure in the last three years. According to the Etherscan service, the commission for processing Ethereum transactions has increased since the beginning of January from 64 to 309 Gwei (+ 382%). Network fees are growing not only against the background of the rise in air prices, experts say. Another factor driving the growth of fees is the decentralized financing market DeFi.