Ethereum transaction fees surge to $7.06 amid network demand

Ethereum (CRYPTO:ETH) users have been facing higher transaction fees over the past week as onchain costs have steadily increased.  

Since September 15, 2024, the average fee per transaction has risen from $1 to $5.08 by September 20, with a slight decrease to just over $4 by September 23.  

As of Tuesday morning, transaction fees reached 0.0027 ETH, equivalent to $7.06.  

Etherscan’s gas tracker revealed that the typical high-priority fee now hovers around $1.07 or 14.411 gwei.  

Specific transactions come with much higher costs, including NFT sales priced at $63.70, swaps at $37.69, bridging at $12.12, and borrowing at $31.98.  

In comparison, Bitcoin’s (CRYPTO:BTC) transaction fees have remained stable, averaging $0.848 per transaction, with high-priority fees as low as $0.18.  

The increase in Ethereum fees coincides with the network's recent price surge, which saw Ethereum gain 15.9% in value over the past week, outpacing Bitcoin's 9% rise.  

Despite the higher fees, Ethereum’s network remains inflationary, with an annual inflation rate of 0.367%.  

Since the implementation of the London hard fork on August 5, 2021, Ethereum has seen significant changes to its fee structure, including the burning of a portion of the transaction fees.  

A total of 4.3 million ETH has been burned since the fork, resulting in a net issuance of 7.53 million ETH.  

Without the London upgrade, Ethereum’s supply would have expanded by 3.23%, or an additional 11.2 million ETH.  

At the time of writing, the Ethereum (ETH) price was $2,656.29.