In the letter
- The average transaction fee for Ethereum rose to over $ 11, more than double what it was last week.
- Daily average fees still haven’t dropped below $ 2, which continues a record streak.
- More hash power is added to the network.
Fees for the Ethereum remain at historically high levels as miners scramble to increase their capacity and take advantage of the record breaking network activity.
The average transaction fees on the Ethereum network have more than doubled since last weekIt rose to $ 11.61 on September 17, maintaining a price streak above $ 2 that has now lasted more than a month and has lasted far longer than any previous stretch at these levels.
Ethereum’s blockchain hash rate – the amount of computing power the network supports – has also risen to levels not seen since 2018 as miners expand their businesses, signaling market activity on both the supply and demand sides that were (almost) never higher.
The fees paid by users for sending tokens or interacting with smart contracts on the Ethereum network serve as a measure of network activity, with higher averages resulting in more transactions on the network. The average fee of $ 11.61 was the second highest measured daily average, just below the record fee of $ 14.58 set a few weeks earlier on September 2nd Blockchain data provider BitInfoCharts.
The total amount of mining power that helps process transactions on the Ethereum blockchain has also increased. Ethereum miners use “rigs” of connected computer graphics cards (GPUs) to create blocks for the Ethereum blockchain, adding “hash power” to the overall pool. In return, miners receive a small and gradually decreasing block reward from ETH, as well as mining fees paid by users for using the network.
With Fees at some of their highest levels everMiners kept adding hash power, bringing the total to nearly 250 terahashes per second – that’s 250 trillion attempts to find the right math calculation to find the next blockchain block. That number has increased by 30% since the beginning of July according to Blockchain Explorer Etherscanand the hash rate was only higher in a period from February to November 2018 when the hash rate peaked at over 290 terahashes per second.
The record activity on the Ethereum network is being driven by DeFi, a system of decentralized applications that enables undetected, crypto-based lending services and fees for users who provide liquidity for trades on decentralized exchanges. DeFi aims to replace centralized rental-seeking financial institutions with protocols that offer the same services but in the hands of the support and user community.
Given the average fees at some of the highest levels ever, and Ethereum miners gearing up for even more network activity, it appears that ETH prices, which are still up from a September 1 high of more than $ 480 Dollars deviate, could also rise to the sky.