ethereum Network transaction volumes have started to surge, and relative gas prices are rising.Data from an on-chain analytics company glass node indicates that the price has more than tripled since the end of 2022.
Over the past nine months, Ethereum transactions have cost an average of 10-20 Gwei. However, due to high trading volume, this figure has now increased to 38 gwei. According to Glassnode, “The gradual nature of gas demand suggests that an early resurgence of network activity may be underway.”
Ethereum gas prices typically increase or decrease depending on network demand. Therefore, as more users try to add transactions to the next block, the fees/costs will rise.
NFT Trading Activity Helped Increase Ethereum Gas Fees
Unlike previous spikes in Ethereum gas prices, the new numbers are not the result of new wallets joining the Ethereum ecosystem. Data shows that the number of new addresses generated on the network remains 40% fewer than it did a year ago. Therefore, it shows that existing traders are the driving force behind the recent surge in trading volume.
Specifically, new drives from Blur with various incentives to attract users and Yuga Labs launch of the highly engaging and challenging Dookey Dash game have spurred collectors. In addition, prominent collections announcing the launch of new projects such as Doodles 2 played a key role.
glass node notebook, “The recent attention surrounding Blur has led to a surge in blockspace demand, resulting in higher validator fees and more ETH being burned via EIP1559.”
As Doodle CEO Julian Holguin highlights, Blur’s rise to the top has been controversial. Competition between the two major NFT marketplaces limits the cash available to many NFT projects that rely on secondary royalties for revenue.
That said, NFT transactions on Ethereum have increased by 97% for the last two months in a row. They are approaching levels last seen during the mid-2021 to mid-2022 NFT boom.
want more? Connect with NFT Plaza
Join our weekly newsletter
Join Discord
follow me on twitter
Like us on Facebook
Follow us on Instagram
*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Basil is an avid fan of blockchain technology and all its innovations, and is passionate about sharing this story with his audience. He has spent over five years in the crypto space, specializing in research and creating his Web3 content for various media outlets around the world.
