Fees for transacting on the Ethereum network breached previous records, passing above $20 for the first time Thursday.
- Ethereum last broke its transaction fee record a month ago on Jan. 11, hitting an average $19 per transaction. Current values double the peak transaction fees recorded during the "DeFi summer" of 2020.
- The increase in fees correlates with the general price run ether has enjoyed since the New Year. The CoinDesk 20 places year-to-date returns on the digital asset at 130%.
- The increase in the cost of transacting on the Ethereum network also reflects growing demand for ERC-20 based tokens, particularly stablecoins and the red-hot decentralized finance (DeFi) sector.
- Led by tokens like uniswap (UNI) and aave (AAVE), DeFi's total market capitalization is up 16.37% in 24 hours, according to Messari.
- Ethereum miners have been a primary beneficiary of the fee spike. The industry earned some $830 million in ether last month with 40% attributed from fees alone.