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Ethereum (ETH) gas fees soared to a 10-month peak — triggered by a rise in meme coin excitement.
According to Glassnode, the average Ethereum gas price over a seven-day moving average (7DMA) hit 43.641 gwei — a level not reached since June 30, 2022.
Gwei represents a subdivision of ETH — where 1,000,000,000 gwei equals 1 ETH, or 1 gwei equals 0.000000001 ETH.
In the previous year, the median gas price on a 7DMA peaked at 150 gwei in May 2022 but fell sharply by July 2022. It then gradually stabilized around the 20 gwei threshold as September 2022 approached, coinciding with the rollout of the Merge.
Source: Glassnode.com
Ethereum gas fees
The expense of utilizing Ethereum has been contentious since the “DeFi Summer” of 2020 — when the average gas price soared to as high as 700 gwei.
This era witnessed a surge in network activity as yield protocols like Curve, Compound, and Yearn gained traction — inciting enthusiasm from the demand to harvest extraordinary returns.
Ethereum’s design leads to elevated gas fees when network traffic and the need for transaction verification are heightened.
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While some believed that the Merge and the transition to Proof-of-Stake (PoS) consensus would alleviate this issue, it was confirmed that gas fees are primarily influenced by the demand for blocks and the network’s ability to satisfy that demand — rather than the consensus method employed.
Recently, Ethereum network activity has surged with a wave of newly launched meme coins — some of which provided early investors with gains in the thousands of percent.
Meme coins are back
PEPE is one notable meme coin, which has quickly ascended to become the sixth largest by market capitalization at $89.1 million within days.
Source: CoinGecko.com
PEPE reached a local peak of $0.000000391704 on April 20 and has been on a downward trend since.
The success of PEPE has ignited discussions on social media about which meme coin might be the next to surge. For instance, a tweet from @liquiditygoblin proclaimed that meme season has returned — tagging “$PEPE, $WOJAK, $COPE.”
Despite the excitement surrounding meme coins, @ManLyNFT cautioned that, while they can be entertaining, they carry significant risks.
The post Meme season blamed for jump in Ethereum (ETH) gas fees appeared first on CryptoSlate.
