Ethereum Fees Reach Two-year High

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The recent surge in meme coin frenzy has caused a spike in network activity, resulting in reduced inflation and a potential benefit for investors in Ethereum.

However, this increased activity has also made using the blockchain more complex, according to a study by IntoTheBlock.

Experts report that between March 2-9, the volume of transaction fees on the Ethereum main network reached $193 million, the highest since May 2022.

This represents a 78% increase in just one week. The rise in network activity can be attributed to the recent popularity of meme tokens and the surge of speculative transactions involving them. In just seven days, coins like SHIB, PEPE, and FLOKI have experienced price increases of 35%, 30%, and 95%, respectively.

Simultaneously, decentralized exchanges on the Ethereum network saw a 40% increase in trading volume, reaching $20 billion, according to DeFi Llama. Experts note that due to the fee burning mechanism, approximately 33,000 ETH (equivalent to $125 million) has been taken out of circulation this week.