As the price of cryptocurrencies keep its gains and, in some cases, rally, it is becoming costly, yet again, to use the two largest blockchains.
First things first, the fees are nowhere near the levels recorded during the bull market’s height, but still, it is getting pretty ramped up.
The average transaction fees on the Bitcoin network surged to about $12 on Friday. Interestingly, the fees didn’t record a considerable uptick on the two days that the price of Bitcoin breached multiple levels to reach a new all-time high at $24,195.
However, the fees started spiking just a week back, when it was under $3, and the BTC price was only around $18,000.
Today, Bitcoin’s average fees are back around $9. In late October, fees had gone even higher, above $13. During this time, BTC price fluctuated $1,000 up and down. Of course, we have a long way to reach the 2017 high of $60 in average fees.
The latest jump in fees came after the transaction count in mempool surged to nearly 132.5k yesterday. But today, the pending transaction is clearing up, falling to the 34.24k level. The hashrate is also 10% off of its all-time high record in mid-October.
Bitcoin price, meanwhile, is keeping around $23,560 ever since breaking it on Thursday.
Much like Bitcoin, the fees on Ethereum also spiked thanks to the bullishness in the market. For Ethereum, not just its price, which is only around $650, still 58% away from its peak but DeFi tokens also play a part.
And yesterday, DeFi tokens jumped with notable gainers, including UNI, AAVE, SUSHI, SRM, CRV, and SNX that pumped 7% to 12%.
A spike in ETH gas fees was expected. On Dec. 17, average gas fees on the network jumped to 138 ETH, up from 35 ETH earlier this month.
For ETH, the explosion of the DeFi market resulted in several such jumps in fees in 2020. In June, the average gas fees climbed to 704 ETH, as per Blockchair.
Although Ethereum has successfully launched the first phase of ETH 2.0 and already 1.57 million ETH are deposited in it, cheaper fees are still not in the picture and may take a long time to become a reality.