The Ethereum blockchain has seen a significant surge in transaction fees over the past 24 hours, coinciding with ETH’s price exceeding $3,700 and marking its highest point in two years.
This spike in fees accompanies the United States Securities and Exchange Commission’s (SEC) delay in deciding on several pending spot Ethereum exchange-traded fund (ETF) applications.
During the last day, ETH’s price increased by about 7% to approximately $3,720, reaching its highest price level since early 2022. This increase contributes to ETH’s overall rally of more than 60% in the past month, mirroring the broader crypto market revival that has also boosted Bitcoin’s price to over $67,000.
However, the Ethereum network’s gas prices have soared during this upward price movement, with an average peak hitting 79 gwei and peak costs reaching up to 219 gwei, according to Etherscan. The spike in fees led to total network fees surpassing $33 million in a single day, a significant increase from the start of the year, as per Cryptofees data.
The upcoming Dencun upgrade is expected to address these high fee issues by improving Ethereum’s transaction speeds, throughput, and reducing fees, addressing some of the blockchain’s long-standing challenges.
SEC Postpones Decision on Ethereum ETFs
Despite Ethereum’s impressive performance, the SEC has postponed its decision regarding applications for BlackRock and Fidelity’s Ethereum ETFs. The regulator has called for public comments on concerns regarding potential fraud and manipulation risks associated with a spot ETH ETF, as well as questions about Ethereum’s proof-of-stake consensus mechanism.
While the SEC’s hesitance reflects the ongoing division within the market on the likelihood of Ethereum ETF approval, the cryptocurrency community remains hopeful. Industry insiders note the SEC’s cautious stance on cryptocurrencies, despite the recent approval of a spot Bitcoin ETF.
