Fees for transacting on the Ethereum network breached previous records, passing above $20 for the first time Thursday.

  • As of 05:45 UTC (12:45 a.m. ET), the average and median transaction fee on Ethereum reached as high as $23.43 and $11.77, respectively, data from Blockchair indicates.
CoinDesk - Unknown

Average Ethereum transaction fee

  • 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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.