During a volatility rise on the cryptocurrency market, traders tend to transact more among each other and various exchanges, which then leads to a fee rise that can sometimes be a barrier for those who are unwilling to move their funds without paying up to $50.
At the transactional activity peak, the Ethereum gas fee reached the local record-breaking value of 905 Gwei. The largest gas consumer was the Uniswap decentralized exchange, which was responsible for 16% of consumed gas.
After topping out, the Gas price returned back to the normal median of 150 Gwei after the volatility on the cryptocurrency market dropped back to normal.
During the morning trading hours, Ethereum lost 20% in one hour but then retraced back up above $3,890 almost immediately. For now, the asset is slowly losing its value and dropping below $3,900.
The first indicators of recovery are appearing as exchange outflows and stable gas prices are now nonexistent. Traders are continuously moving their funds to centralized and decentralized exchanges to take profits and exit both the Bitcoin and Ethereum markets.
At press time, Ethereum trades at $3,864 and loses approximately 9% of its value. The lowest point of the day was the market at $3,342.