Ethereum fees have notched a new all-time high of $1.771 million. IntoTheBlock data shows. The daily gas cost went to 569 Gwei.
Earlier today, the second-largest cryptocurrency soared to $1,162, its highest level since Feb. 1, 2018, before a sharp market correction threw a wrench in the works for the bulls.
Ethereum transactions have never been that expensive
Gas fees — which are paid for processing transactions on the blockchain — typically spike when there’s an outpouring of demand. They are paid to miners who are responsible for handlings transactions on the network.
According to Glassnode, Ethereum miners have collected a whopping $898,000 worth of fees in just one hour, setting a new record high.
Not only did the most recent spike eclipse the craze around the decentralized finance (DeFi) sector in summer 2020, but it also managed to surpass the ICO-inflated bubble in early 2018.
Automated market maker Uniswap and stablecoin operator Tether remain the biggest gas hogs, accounting for the majority of fees spent over the past month.
Miners are the only winners
While Etherians are celebrating a massive rally, there is also some apprehension about future appreciation since it means that it could potentially cost hundreds of dollars to send a single transaction. This, in turn, could make Uniswap and other applications way too unstable to use.
Ethereum 2.0 is supposed to address network congestion and scaling issues, but a failure to do so could make developers switch to rivaling networks such as Cardano that are already making strides in the DeFi space.
Miners, however, certainly want to keep the network congested since they will be able to keep pocketing exorbitant fees.