According to Coinbase, Ethereum network transaction fees have risen significantly over the past two weeks due to a surge in on-chain activity.
According to Coinbase’s weekly report released on September 27, from September 16 to September 26, average Ethereum gas fees were 498% higher than the monthly average, with median transaction costs rising to $1.69 from $0.09 at the beginning of the month. . .
Ethereum transaction fees and ETH transfer volume
Coinbase analysts David Duong and David Han said the surge in transaction fees was due to a surge in on-chain activity on Ethereum.
“There was no single driver for the increase in activity,” the analysts said, highlighting several contributing factors, including a slight 9% increase in trading volume on the Ethereum decentralized exchange (DEX) compared to the previous week.
“USDC deposit rates on lending platform Aave also increased modestly from 3.5% to 4.5%, suggesting a slight increase in leverage.”
Analysts also added that total Ethereum transfer volume increased 17% week-on-week, which led to higher transaction fees.
The increase in on-chain activity is evident in rising gas fees, which have spiked to 40gwei several times in the past week, according to blockchain efficiency company Gashawk.
“ETH gas has surged above 30-40 gwei several times over the past 7 days, then dropped back to 5-10 gwei.”ETH gas rates between September 21st and September 27th. Source: Glasshawk
Due to the increase in on-chain activity and transaction fees, the total Ether fees burned each day has also surged, reaching 2,097 ETH, an increase of more than 900% between September 14 and September 24, according to CryptoQuant data.
Ethereum total fees burned. Source: CryptoQuant
Meanwhile, DApp trading volume has nearly doubled in the past 24 hours, up 97% to $3.6 billion, according to data from DappRadar. Similarly, NFT trading volume also increased by 17% on the day, reinforcing the increase in activity on the Ethereum blockchain.
Ether price breaks above major indicators.
From a technical perspective, the price of Ethereum (ETH) has crossed the descending Relative Strength Index (RSI) trend line that originated in March at a multi-year high of $4,093, suggesting a bullish turn in ETH’s near-term momentum is possible.
ETH/USD daily chart. source: TradingView
Despite the positive change in momentum, Ethereum still remains below the 100-day and 200-day exponential moving averages (EMA), currently sitting at $2,770 and $2,864, respectively.
These EMAs will continue to act as barriers and bulls will need to turn them into support to see a sustainable recovery.
Meanwhile, Ethereum investment products recorded inflows of $87 million, recording negative results for the fifth consecutive week. This is “the first measurable inflow since early August,” according to a recent report from CoinShares. This was largely driven by inflows into the spot Ethereum ETF, which recorded inflows of $58.7 million on September 27, according to data from Farside Investors.
BlackRock’s ETHA continues to see positive trends with inflows of $11.5 million, with net inflows exceeding $1 billion on September 27.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.