Amid its ongoing rebound, Ethereum gas fees have hit a $7 average as users are faced with increasing transaction costs. Since the middle of September, transactions increased, reaching heights of $5 and staying that way until they dropped slightly by the 23rd. Yet, Tuesday morning they increased again, reaching an average of 0.0027 ETH.
Ethereum has long been known for its slow speeds and extensive costs. It is why networks like Solana have thrived when competing with the blockchain. Although ETH remains the second largest crypto by market cap, its ongoing issue with cost has many questioning its longevity there.
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Ethereum Surges as Users Pay the Price With Surging Transaction Costs
Despite a volatile year in 2024, Ethereum has enjoyed a notable turnaround. The asset has increased almost 12% in the last seven days, according to CoinMarketCap. Although it is down over the last 24 hours, it is still trading firmly above the $2,650 mark.
That price increase has many users paying the price, however, as transaction costs increase along with it. Ethereum gas fees have surpassed a $7 average, according to Etherscan data. Specifically, this shows that a high-priority fee on the network is now around 14.411 gwie or $1.07.
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Even more concerning is the reality that not all transactions are created equal. Ethereum swaps are more than $37, with NFT sales priced above $63 while bridges cost $12.12. Moreover, borrowing could cost as much as $31.98, proving the struggle that many users are facing.
This is a stark difference between something like Bitcoin. The fees for the leading crypto are maintained. They average less than $0.9 per virtual byte. Whether or not this will harm Ethereum in the long run remains to be seen. However, the reality Is that it has yet to influence its position. With Solana and others becoming more prominent, that will be interesting to observe.