Transaction fees on the Ethereum blockchain experienced a significant surge in the past 24 hours, coinciding with ETH’s price surpassing $3,700, marking a two-year high.
This development comes amid the US Securities and Exchange Commission’s (SEC) delay in ruling on multiple pending spot ETH exchange-traded fund (ETF) applications.
Ethereum’s price spike coincides with high network fees
During the past day, ETH’s price jumped by approximately 7% to around $3720 as of press time, its highest price level since early 2022.
The surge brings ETH’s total rally to over 60% during the past month, as the blockchain network mirrors a broader crypto market revival that has propelled Bitcoin’s price to more than $67,000.
However, Ethereum network gas prices soared amidst this price upward trajectory, hitting an average peak of 79 gwei, with peak costs reaching as high as 219 gwei, according to Etherscan data. Several Ethereum users took to social media to decry the high fees and how it impacted their trading activities, including token swaps and borrowing transactions.
Remarkably, this surge in fees saw the total network fees surpassing $33 million in a single day, a threefold increase compared to the beginning of the year, according to data from Cryptofees.
Meanwhile, market observers noted that the impending Dencun upgrade could address these high fee challenges. This upgrade is anticipated to tackle Ethereum’s historical issues of sluggish transaction speeds, limited throughput, and high fees.
SEC’s delays spot Ethereum ETF decision
Despite Ethereum’s impressive surge, the SEC has further delayed its decision on BlackRock and Fidelity Ethereum ETF application.
The regulator is seeking public comments on the potential fraud and manipulation risks associated with a spot ETH ETF and has also raised questions about Ethereum’s proof-of-stake consensus mechanism.
Meanwhile, the SEC’s decision is unsurprising as market participants remain divided on whether the regulator would greenlight Ethereum’s ETF. Industry insiders say the SEC remains cautious about cryptocurrencies despite its recent approval of a spot Bitcoin ETF.
Nevertheless, major crypto stakeholders, such as Coinbase, have advocated for the approval of ETH ETFs.
