ETH Fees Skyrocket as Dencun Upgrade Countdown Begins
The Ethereum network has experienced a significant increase in fees, reaching levels not seen since May 2022, driven by the speculative frenzy surrounding meme tokens.
Bitcoin’s surge to new all-time highs has prompted investors to take riskier bets, particularly in meme tokens, which have seen an average increase of threefold over the past month.
This has led to Ethereum experiencing its highest fees in nearly two years, with the network surpassed $190 million in fees in the past week, resulting in an annualized rate of over $10 billion for the first time since early 2022.
Ethereum’s fee-burn mechanism has reduced ETH supply by approximately 33,000 ETH, equivalent to around $125 million.
However, this surge in fees has made the network less accessible for many users, with the average transaction fee on Ethereum’s mainnet reaching $28 in the past week.
On the Arbitrum Layer-2 (L2) network, average fees have climbed above $1 for the first time since June 2022.
Furthermore , Ethereum’s upcoming Dencun upgrade is expected to alleviate increased gas prices on L2s, with projections suggesting fee reductions of at least 80% following the upgrade.
(With inputs from Shikha Singh)
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