Transaction fees on the Ethereum blockchain skilled a big surge up to now 24 hours, coinciding with ETH’s price surpassing $3,700, marking a two-year high.
This improvement comes amid the US Securities and Change Fee’s (SEC) delay in ruling on a number of pending spot ETH exchange-traded fund (ETF) functions.
Ethereum’s price spike coincides with high network fees
Throughout the previous day, ETH’s price jumped by roughly 7% to round $3720 as of press time, its highest price degree since early 2022.
The surge brings ETH’s complete rally to over 60% in the course of the previous month, as the blockchain network mirrors a broader crypto market revival that has propelled Bitcoin’s price to greater than $67,000.
Nonetheless, Ethereum network gasoline costs soared amidst this price upward trajectory, hitting a mean peak of 79 gwei, with peak prices reaching as high as 219 gwei, in line with Etherscan data. A number of Ethereum customers took to social media to decry the high fees and the way it impacted their buying and selling actions, together with token swaps and borrowing transactions.
Remarkably, this surge in fees noticed the entire network fees surpassing $33 million in a single day, a threefold enhance in comparison with the start of the 12 months, in line with data from Cryptofees.
In the meantime, market observers famous that the upcoming Dencun improve may handle these high price challenges. This improve is anticipated to sort out Ethereum’s historic problems with sluggish transaction speeds, restricted throughput, and high fees.
SEC’s delays spot Ethereum ETF decision
Regardless of Ethereum’s spectacular surge, the SEC has additional delayed its decision on BlackRock and Fidelity Ethereum ETF utility.
The regulator is searching for public feedback on the potential fraud and manipulation dangers related to a spot ETH ETF and has additionally raised questions on Ethereum’s proof-of-stake consensus mechanism.
In the meantime, the SEC’s decision is unsurprising as market members stay divided on whether or not the regulator would greenlight Ethereum’s ETF. Trade insiders say the SEC stays cautious about cryptocurrencies regardless of its current approval of a spot Bitcoin ETF.
Nonetheless, main crypto stakeholders, such as Coinbase, have advocated for the approval of ETH ETFs.
