The hype around the meme-inspired cryptocurrency has caused the price of Ethereum gas to spike in recent days. The growing demand for transactions on the Ethereum network is a direct effect of the rise in value of these tokens.
There was a 10-month spike in Ethereum gas prices. According to data provided by glass nodethe median ETH gas price on a seven-day moving average rose to 43,641 gwei, a level not seen since June 30 last year.
The network uses a gwei-based measurement system. To make a transaction or launch a smart contract on the Ethereum network, a certain amount of gas is required.
📈 #ethereal $ETH Gasoline median price (7d MA) just hit a 10-month high of 43,641 GWEI
Previous 10-month high of 43,620 GWEI was observed on June 30, 2022
See metric:https://t.co/6QGDfZoULY pic.twitter.com/n9qDcd6NqD
— glassnode alerts (@glassnodealerts) April 21, 2023
Gas is a unit of computational effort that is used on the Ethereum network to carry out a certain operation. Gwei is the currency used to indicate the gasoline cost needed to perform an action on the network.
One Gwei equals 0.000000001 Ether (ETH), which means that if the gas price is 20 Gwei, it would cost 0.00000002 ETH to execute the trade. The price of gas may vary depending on network congestion and demand.
Since higher gas prices encourage miners to include transactions with higher gas costs in the blocks they mine, higher gas prices generally result in faster transaction processing times.
ETH market cap at $229.8 billion on the daily chart at TradingView.com
Ethereum Gas Fees Increase 35%
The average price of gasoline in a 7DMA peaked at 150 gwei in May 2022 and has since declined significantly to the mid-teens. Then, starting in March 2022, it began to settle at about 20 gwei, where it remained until Fusion went live in September of that year.
As of April 20, 2023, the average gas price for Ethereum transactions was 81.94 gwei, up from 60.82 gwei on April 19 and 44.42 gwei in 2022, representing an increase of 34.74% and 84.46%, respectively.
Memecoins are all the rage in town right now, and Pepe The Frog is leading the charge. According to market analysis platform Santiment, recently implemented memecoins like $TROLL, $APED, and $BOBO have outperformed major gas-burning altcoins.
Most notably, PEPE’s market capitalization rose to just over $89 million in just a few days, making it the sixth largest meme coin.
Source: Coingecko
Ethereum beats Bitcoin in daily fees
Meanwhile, independent Ethereum educator Anthony Sassano claimed that the second largest blockchain, Ethereum, had generated 28 times the revenue of Bitcoin through its daily fee structure.
Furthermore, he mentioned Layer 2 Ethereum platforms that have outperformed the BTC network in terms of daily revenue, such as Arbitrum One.
Image shows the daily and weekly revenue of various blockchains. Source: Twitter
The findings also showed the growing prominence of Ethereum in the dynamic cryptocurrency market.
Within the Ethereum community, gas fees have been a topic of conversation. Certain activities, such as small transactions or interacting with low-value smart contracts, can become prohibitively expensive due to high network gas fees.
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