The Ethereum (ETH) network has gone through randomly congestion days, which makes transaction fees is significantly high, up to $30.
The Reason Caused Exorbitant Fees
In a Nov 22 tweet, a user namely Nate Maddrey said that transaction fees when sending ETH growly up to $30, which caused by high competition on separate unusual blocks. Such a spike in fees was random and rare, and the current fees are back to under $0.10.
1/ Just tried to make an Ethereum transaction and suggested fees were over $40.
Looks like mean block fees shot up to over $30 for some blocks earlier today.
Data via @coinmetrics Realtime Network Data pic.twitter.com/cddsj4OtkE
— Nate Maddrey (@natemaddrey) November 22, 2019
Moreover, the Ethereum network is naturally a competitive economy of resources, especially at periods of high activity.
As we can know, there are many reasons that lead to rising fees, makes users almost unable to send coins or tokens. One of those reasons was to mining slowly recent due to the increased difficulty of the mining ice age feature. Additionally, it is expected that the ice age will be suspended again, so ETH manufacturing is maybe slower, with the block delays.
On the other hand, the launch of ERC-271 non-fungible tokens – based on the Gods Unchained collectibles marketplace, also mentioned as a reason. According to that, the crypto-collectibles have obstructed the network in the past, special on days of original enthusiasm. But now, Tether (USDT), once again, is the most active contract.
The official Gods Unchained marketplace is NOW OPEN!
Complete your dream deck, or list cards for sale inside the game client ? pic.twitter.com/JrJSCtKxO9— Gods Unchained (@GodsUnchained) November 22, 2019
Furthermore, the other reason for the sudden spike is dismissing of smart contracts concerned with decentralized finance (DeFi). The liquidation rules were activated as soon as the ETH price down from $189 to $145. The contracts could be willing to pay high fees to complete their operate in time.
⚠Over 200 CDP liquidations happened in the last 24 hours.⚠️
Our Automation system has kept 70+ CDPs on both SCD and MCD with over $3Million worth of collateral safe?️ throughout the crash. Enable at: https://t.co/HG8vTdnVfl
Don’t let yourself show up on the @MakerRekt feed.
— DeFi Saver (@DeFiSaver) November 22, 2019
In reality, the using of Ethereum daily network has reduced from a peak in May – above 94% of transaction capacity was filled. Currently, utilization average is about 84%.
Ethereum Daily Network Utilization History ( Source: Etherscan.io)
The Same Thing Happened in the 2017 and 2018 ICO craze
The similar congestion for ETH also occurred in the 2017 and 2018 ICO craze. At that time, the distribution of ICOs or tokens were still remarkable, each transaction took hours or high gas payments. Presently, the ETH network has not found another FOMO game – one of the most serious gas consumers.
Last recently, ETH price dropped to $149.39, breaking relative stability in weeks.
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