The Ethereum network has witnessed a significant surge in transaction activity starting in February, pushing the network’s gas fees to their highest levels in recent months.
This increase aligns with a notable rise in economic throughput on Ethereum, marking a period of heightened activity on the blockchain.
A Surge in Transaction Volume
Data insights reveal that the seven-day moving average for Ethereum’s economic throughput has ascended to over $3.55 billion, marking a 15% increase from the $3.08 billion average recorded at the month’s onset.
This spike in transaction volume has directly impacted the network’s gas fees, causing them to soar to a peak not observed since mid-December of the previous year, as per The Block’s Data Dashboard.
On February 9th, Ethereum’s gas fees experienced a notable leap, with the total network fees for the day totaling 854 ether, according to YCharts.
This uptrend in gas prices can be attributed to various factors converging to elevate network demand.
NFT Trading Volume Peaks
One significant contributor to this surge is the increased trading volume of Non-Fungible Tokens (NFTs) on the Ethereum blockchain.
The Block’s data highlights that NFT trading on Ethereum has hit its zenith since the end of February last year, signaling a rejuvenation in the NFT market space.
For the past week, Ethereum’s NFT trading volume escalated to a multi-month high of $147.29 million, underlining the burgeoning interest and activity within the NFT domain on the Ethereum network.
Ether’s Price Movement
Amidst this uptick in network activity and gas fees, the price of Ether has seen a slight decline.
The cryptocurrency’s value dipped by 1.9%, settling at $2,476 as of 5:30 a.m. ET, according to The Block’s Price Page.
This price movement reflects the dynamic nature of the crypto markets, influenced by various factors including network activity, trading volumes, and broader market sentiments.
