NFT craze pushes Ethereum gas fees to the highest level since May

Ethereum gas fees

TL;DR Breakdown

  • Ethereum gas fees have risen once more due to the increase in amount of non-fungible tokens being traded on the network.
  • The Ethereum network has seen a huge surge in network fees ever since the NFT frenzy began this year.
  • Almost every organization seems to build a new project involving NFTs, including the recent integration of Wombat wallet with Ethereum.

Non-fungible tokens have seen a rapid adoption this year, and the NFT industry is already a billion-dollar industry. There are plenty of mainstream celebrities that have also joined the industry, releasing their NFTs this year, including The Weeknd and Katy Perry.

NFTs can store an image, video, or audio in the form of a digital asset on a blockchain network. The Ethereum network has always been the favorite place for NFT-related assets, and due to the recent influx of these digital tokens, the Ethereum gas fees are seeing new highs since May.

Ethereum gas fees and influx of NFTs

During the month of May, when Ethereum price touched new all-time highs, and the congestion on the network reached its highest point, the Ethereum gas fees were around 22 USD.

The average network fee was USD 17.45 on Tuesday, while at the start of the month, it was around 7.81 USD. The surge recorded in percentage is 123.5 percent which makes the transactions over the network quite costly.

Ethereum gas fees
Ethereum average transaction fee surge in the month of May
Chart by bitinfocharts

Considering the median transaction fees, at the beginning of August, it was at 3.03 USD, while currently, it is at its highest point since the month of May at 7.17 USD. The recorded increase percentage-wise is 136.7 percent.

NFT craze pushes Ethereum gas fees to the highest level since May 1
The median Ethereum fee has also risen to new levels since May
Source: bitinfocharts

This surge in Ethereum gas fees indicates the rising interest of institutions as well as traders in the price of NFTs. It can be concluded that indeed the future of NFTs is indeed being built right before us.

John Lincoln

John Lincoln

Lincoln contributes blockchain and crypto perspectives that meet the industry's selective information needs in a timely, undiluted fashion. His greatest wish is to share transformational technology through an engaging and easy-to-read style, making complex topics accessible to all.

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