TL;DR
Full Story
Ethereum network fees rose 270% last week.
Which is straight up BONKERS, but we have a theory on why this happened.
First things first though:
A refresher — Ethereum uses ‘gas fees’ to compensate folks for verifying transactions on its network. So each time you buy/sell Ethereum, a fee will be associated with the transaction.
Now, why the heck did they rise 270%?!
Honestly, we aren’t entirely sure, but we have some ideas:
-
Transfer Volume: Over the past week, the total volume of ETH moving on-chain jumped 159%. Which is nuts.
But, what needs to be noted here — average transaction fees are not related to the amount of ETH being moved in a single transaction — they’re the same regardless of the transaction’s total value…
Which brings us to point #2:
-
ETH Market Value: ETH’s market value jumped 9% last week which could have boosted the network’s total earnings and caused the jump in transaction costs.
(Cause when demand goes up, you can charge more for fees). Which segues nicely into point #3…
-
The Burn Rate: With every Ethereum transaction, there is a set amount of ETH burned/destroyed.
Last week – base fees spiked all of a sudden, pushing more ETH to be burned and taken out of circulation.
(This helps helps to keep ETH scarce, and push its value up over time).
And it looks like we witnessed a perfect storm of those three factors:
A quick increase in ETH transactions + an increase in Ethereum’s value + a decrease in supply = higher prices (and higher fees).
Ah, good ol’ economics.
can i buy clomid without dr prescription where to buy generic clomid where to get clomid pill clomiphene challenge test protocol how to get clomiphene without prescription clomiphene price uk can you buy generic clomid without insurance
More posts like this would bring about the blogosphere more useful.
The reconditeness in this piece is exceptional.
zithromax ca – buy generic tinidazole over the counter metronidazole online
order rybelsus 14 mg pill – buy semaglutide cheap cyproheptadine 4mg
purchase motilium online cheap – buy tetracycline 250mg cyclobenzaprine 15mg brand