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NFT hype is driving Ethereum transaction costs up

Non-fungible tokens have seen tremendous popularity again this month, which wasn’t ideal for Ethereum users as transaction fees have skyrocketed again with it.

NFTs drove up gas charges

Ethereum users have to live with higher transaction costs again, which have climbed to their highest level in 3 months. According to Bitinfocharts, the average transaction fee rose to $ 27.23 yesterday, up 240% since early August.


Most recently, gas was so expensive on May 19, when average prices rose to $ 60 before hitting the all-time high for gas on May 12 at $ 70.

These prices are average prices, which is why transactions such as token swapping or smart contract activities are likely to be higher. A uniswap token swap can currently cost up to $ 30, according to Etherscan.

Cryptofees reported that the ETH network generated $ 32.7 million in fees yesterday. That’s 98% more than Bitcoin, whose network generated $ 629,000 in fees on Aug. 26.

Non-fungible tokens are primarily responsible for the increase in gas charges. According to Nonfungible, August will be the busiest month in terms of sales, having already raked in $ 900 million in the last 30 days.

The NFT marketplace OpenSea is currently the largest fee driver with around $ 5.7 million in network fees generated in the last 24 hours. This corresponds to almost 21% of ETH’s total gas consumption on the last day. Axie Infinity also drove fees up after being listed on Coinbase.

Even NFT investors are holding back a little due to the high transaction costs.

Axie Infinity and CryptoPunks have dominated NFT sales for the past 30 days at $ 850 million and $ 500 million, respectively, according to Cryptoslam. Art Block are the third most popular, with sales of $ 438 million last month.

Image @ Pixabay / License


Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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