Ethereum Fees Reach The Highest Level Since May 2022 Due To Memecoins Hype
- This week, average transaction fees on the Ethereum network reached levels not seen since May 2022.
- The rise in transactions is said to be the result of the recent hype of memecoins.
- The Shapella upgrade is also one of the factors that increase the number of transactions on the blockchain.
Following the increased on-chain activity, the median average transaction fee on Ethereum has risen to its highest level since May 2022.
According to a Dune analytics dashboard from Hildobby, a pseudonymous data analyst at VC company Dragonfly, Ethereum network fees increased to roughly 87 gwei on May 2. Due to high trade fees, Ethereum Virtual Machine (EVM)-compatible blockchains reached all-time highs last week.
BNB Chain, Polygon, and Avalanche are EVM-compatible blockchains. Transaction costs on these networks are often cheaper than those on Ethereum.
The latest surge of memecoins that have continued to rebel may be part of the explanation for the high transaction fee.
Memecoins are a new kind of digital asset that has taken the cryptocurrency world by storm. These tokens are inspired by famous memes and have swiftly garnered popularity within the crypto community because to their distinct branding and marketing techniques.
Memecoins have lately seen a rebirth. In the last week, a boom in memecoins such as PEPE sparked speculative interest in cryptocurrencies before cooling down. Pepe’s price has risen about 38,900% since its April 14 introduction, thanks to a social media craze. Last month, the token price increased 266 times in four days.
Binance CEO Changpeng Zhao recently revealed in a Twitter Spaces engagement that he has never understood memecoins and that listing choices are made by a different team.
This week, the memecoin’s market cap soared to over $500 million before plummeting back below $400 million. Many of these tokens lack liquidity or market depth, which means that traders’ ability to buy and sell close to market price is limited, making coins vulnerable to sharp price swings.
The much-anticipated Ethereum’s Shanghai blockchain upgrade, also known as “Shapella” by diehards, is also one of the reasons for the recent spike in transactions on this blockchain.
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