Demand for Ethereum has increased as a result of the “Altair” From this week.
The average transaction fee on Ethereum is rising to $51.45, according to data from the crypto site. BitInfoCharts. The numbers show an increase of 2,293% since the end of June.
Just seven days ago, the average transaction fee on Ethereum was $22.52. This month was particularly moody for Ethereum gas rates. On October 15, the average rate was $45.74, nearly double the value on the first day of the month: $23.79.
The price of transactions on the Ethereum has fluctuated since the London fork in August, but despite the large variations – often between days – gas rates on the network are trending upwards.
It is important to note that BitInfoCharts provides a value based on the average transaction rates recorded yesterday. On Etherscan, the real-time transaction fee at the time of writing is currently on average $44.33.
Why are rates increasing?
Transaction fees increase when demand for Ethereum increases. Last week, Ethereum and Bitcoin prices rose together, setting new midweek highs.
Since then, the price of Bitcoin has retreated from $66,930 to $61,683, down about 8%, while Ethereum has continued to climb to establish a new all-time high of $4,456 yesterday.
The two market leaders often exhibit similar price movements. The combined market capitalization of the global cryptocurrency market is $2.63 trillion. Bitcoin commands $1.1 trillion of that, and Ethereum comes in second, commanding a respectable half a trillion dollars.
The doubling of the average transaction rate on Ethereum from last Saturday to today roughly correlates with the trading volumes over the last seven days. Last Saturday, US$ 14.7 billion in Ethereum were traded, while yesterday the number rose to US$ 26 billion.
Ethereum’s explosive price performance and trading activity over the past week may have boiled down to excitement surrounding the latest blockchain network update. Altair’s update is a step towards Ethereum 2.0 – a faster, greener, cheaper and more secure Ethereum network.
Specifically, Altair is designed to ease Ethereum’s transition from a network that uses a consensus mechanism from proof of work – where miners with the most computing power validate the most transactions – to proof of bet, where miners who bet the most ETH validate most transactions.
Of course, the network still has a little way to go before it can deliver on its promises of cheaper gas rates. Still, today’s price performance is a strong indicator that many are joining.