ETH witnessed its average fees increasing by roughly 300% yesterday. That can be due to the collapse in the total crypto space and the non-fungible token minting event.
Ethereum record magnified fees on its network again. Analysts attribute such actions to two events – the awaited NFT collection minting and the total market plunge.
ETH Fees at Record High since May
Ethereum network witnessed its fees surging tremendously, registering a whopping 300% increase in one day. YCharts stats indicate that yesterday the gas charges were in the highest value since May. On 7 September, ETH’s average fees stood at $21.29. That appeared to attract the entire crypto community as most of them urged that several competing platforms are cheaper.
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Why the Heightened ETH Fees?
Two things might explain the skyrocketed fees on the Ethereum ecosystem. What appears to be the obvious explanation is the market-wide plummet seen yesterday. As the reports by CryptoPotato show, the total market lost short and long positions worth more than $2.5 billion in a few hours. That came after Bitcoin saw dramatic losses, hitting $43K as ETH struggled under $3K.
Events like this in the cryptocurrency market happens to catalyze panic selling. Market players flood crypto exchanges like the decentralized Uniswap platform as they trim their crypto holding to alleviate more losses. As a result, the crypto platforms see increased transactions, sending the trading fees higher. That happens each time the market register a sudden price move in any direction.
Also, another event in the crypto market yesterday might account for the increased ETH fees. A non-fungible token project known as ‘the Sevens’ ended its presale on 7 September (yesterday). Most traders declared that they were to pay remarkably increased gas fees to perform their transactions. Moreover, some users complained about losing lots of money in gas charges, and they failed to complete the transactions.
Keep in mind that the market registered drastic plunges after El Salvador’s historic progress to make BTC a legal tender. Salvadorians appeared not happy with the move as they stormed the streets with protests.
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