Ethereum (ETH) gas fees rose to a 10-month high, buoyed by a rise in meme coin mania.
By glass nodethe average price of Ethereum gas over a seven-day moving average (7DMA) hit 43,641 gwei, a price last seen on June 30, 2022.
Gwei is a denomination of ETH: 1,000,000,000 gwei equals 1 ETH or 1 gwei equals 0.000000001 ETH.
Over the past year, the average gas price on a 7DMA peaked at 150 gwei in May 2022, but fell sharply in July 2022. It then gradually stabilized around the 20 gwei mark until September 2022, when it implemented the Fusion.
Ethereum gas fees
The cost of using Ethereum has been a point of contention since the “DeFi Summer” from 2020, when the average price of gasoline reached 700 gwei.
This period saw a surge in network activity as performance protocols such as Curve, Compound, and Yearn began to take off, sparking mania in demand for unrealistic profits.
Ethereum’s architecture is such that high gas fees arise when network traffic and the demand for transaction verification is high.
While some assumed that the merger and switch to Proof-of-Stake (PoS) consensus would address this issue, it was confirmed that gas fees continue to be primarily driven by demand for blocks and the ability of the network to meet that demand, not the consensus mechanism. used.
Recently, activity on the Ethereum network skyrocketed with a wave of recently released meme coins, some of which generated gains of thousands of percent for early investors.
The meme coins are back
PEPE is one such meme coin, which has become the 6th largest by market capitalization with $89.1 million in just a few days.
PEPE reached a local high of $0.000000391704 on April 20 and has been trending lower ever since.
The success of PEPE has spurred conversations on social media about which meme coin is next to rise. For example, a tweet from @liquiditygoblin said meme season is back – tagged “$PEPE, $WOJAK, $COPE.”
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