Hit the Gas: On Ethereum’s mushrooming transaction fees (Sanbase Pro report)
Over the past two months, transaction fees on the Ethereum network have positively ballooned amid the proliferation of decentralized finance solutions and so-called ‘yield farming’ platforms.
In this report, we explore how the DeFi fever affects the day-to-day interactions with the Ethereum blockchain, and highlight the biggest culprits of the ongoing network congestion issues.
The temporary ‘professionalization’ of the Ethereum network
To put the present fee hike in proper context, the below graph delineates the mean transaction fees on the Ethereum network, plotted against the price of ETH.
As you can see, it becomes readily apparent that the Ethereum network has never faced a congestion hitch quite this drastic before. Throughout its 5-year history, Ethereum’s daily transaction fees have always stayed well below 1 USD on average. In comparison,
the average daily transaction fee over the past 7 days has
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