Ethereum network gas fees have climbed to their highest levels in recent months following a significant rise in transaction volume. Despite a roughly 2% drop in Ethereum’s price over the last 24 hours, data indicates a notable increase in Ethereum transaction volume since the beginning of February, resulting in the highest gas fees seen in months.
Increase in Transaction Volume Raises Gas Fees
The seven-day moving average of economic throughput on the Ethereum Blockchain has risen above $3.55 billion, marking a significant 15% increase from the beginning of the month, which was at $3.08 billion.
This surge in transaction volume has significantly increased gas fees on the Ethereum network, with the seven-day moving average of this metric rising above $11, a level not seen since mid-December 2023. This level is the highest in several months.
NFT Transaction Volume Adds Pressure
According to YCharts data, total Ethereum network gas fees reached 854 Ethereum on February 9th, showing an additional increase in high gas fees. A leading factor contributing to this rise in gas prices is the unprecedented increase in NFT transaction volume on the Ethereum Blockchain in recent weeks.
Data reveals that NFT transaction volume on Ethereum has reached its highest level since the end of February of the previous year. In particular, the Ethereum NFT transaction volume hitting a peak of $147.29 million in the past week indicates a significant increase in activities within the NFT ecosystem.
Ethereum Struggles with Critical Resistance
While Ethereum’s transaction volume continues its upward trend, partly supported by the evolving NFT market, network congestion has driven gas fees to levels not seen in months. This increase highlights the importance of ongoing efforts to address scalability issues within the Ethereum ecosystem, as users grapple with the consequences of rising network fees.
At the time of writing, the price of Ethereum, the leader of altcoins, has surpassed a significant resistance level of $2,500. The price continues to trade at the $2,626 level. Analyst Michael van de Poppe had indicated in recent days that levels around $2,700 for Ethereum could be seen soon.
