PEPE Mania Pushes Ethereum Gas Fees to One-Year High!
• Ethereum gas fees have spiked to a one-year high due to the popular “PEPE” crypto craze.
• Approximately 31,700 ETH have been burned in the last week alone.
• Transaction costs on Ethereum have risen to over $15 as network activity increases.
Ethereum Gas Fees Spike Amidst PEPE Craze
On-chain data shows 31,700 ethereum (ETH) have been burned in the last week due to the latest mania over pepecoin (PEPE). This development has pushed Ethereum’s transaction costs even higher, with daily median gas price reaching a 12-month high of 87 gwei – equivalent to one billionth of an ether (ETH).
The Frog Behind Gas Fees
Pepe coin (PEPE) is a frog-themed token that has gained immense popularity in the crypto sector over the past few days. The token has seen an incredible 665% growth in value this past week, and now boasts a market capitalization of $500m and trading volume exceeding $150m.
Fear of Missing Out
The meme coin fear of missing out (FOMO) is believed to be why gas fees in Ethereum is rapidly rising. As more investors flock to PEPE, its value has continued to soar, reaching an impressive market value of $879m in the latest trading session.
A Hard Fork Upgrade
In 2021, Ethereum was upgraded via EIP-1559 which resulted in a portion of all ethereum transactions being burned. Despite this overhaul of the gas fee system in Ethereum, transaction fees continue to rise as network activity increases.
As more investors flock into PEPE and other cryptocurrencies, we can expect average transaction costs on Ethereum to continue increasing for some time. However, it’s important for investors to consider their risk tolerance when investing into any cryptocurrency.