With Ethereum gaining traction and seeing large transaction volumes, the skyrocketing fees raise concerns, particularly among traders.
, the leading blockchain for smart contracts, is seeing an increase in on-chain activity. This rise is driving higher transaction fees, especially as more traders leverage decentralized finance platforms that rely on Ethereum’s network.
With Ethereum gaining traction and seeing large transaction volumes, the skyrocketing fees raise concerns, particularly with the increasing involvement of traders.While analysts have not attributed this surge to one cause, the rise in decentralized exchange volumes and the increased usage of the ETH network have contributed significantly to the higher transaction fees.One key on-chain metric contributing to the rising fees is the analysis of Ethereum addresses.
The more active the network, the more difficult it becomes to verify transactions, which, in turn, drives up transaction fees.Another contributing factor to the rise in Ethereum transaction fees is the surge in DEX volumes. The total volume of ETH traded on DEXs in the last 24 hours stood at $978 million, with the weekly volume hitting $8.38 billion, marking a 2.13% increase.
However, there has been a shift, with outflows now balancing inflows, signaling renewed interest in staking. This increase in staking activity leads to more transactions on the Ethereum network, adding further strain and pushing transaction fees higher.
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