Amidst a 314 surge in Ethereum gas fees users mysteriously disappear What could be causing this exodus
### Key Takeaways
– Ethereum transaction fees have surged by a staggering 314%, averaging $3.52.
– The Ethereum burn rate saw a dramatic increase of 1,600%, with 1,360 ETH incinerated on September 21.
– Despite the rise in transaction fees and burn rates, active Ethereum accounts have plummeted to a yearly low of approximately 385,000.
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Ethereum, the second-largest cryptocurrency by market capitalization, has recently experienced a remarkable increase in transaction fees. According to crypto analyst Kyledoops, these fees have escalated by an astonishing 314%. Concurrently, the number of active Ethereum accounts has fallen to its lowest level this year, revealing a surprising trend amid rising costs on the network.
### Ethereum’s Transaction Fees Surge
As reported by Kyledoops, the seven-day average transaction fees for Ethereum have soared to $3.52, reflecting a significant increase from just $0.85 at the beginning of September. The fees reached this peak largely due to heightened gas consumption from specific smart contracts and congestion on the network. Additionally, transfers involving Ether and stablecoins such as Tether (USDT) and USD Coin (USDC) have substantially contributed to the escalating costs. As a result, users now face considerably higher expenses when executing transactions on the blockchain.
### Surge in Ethereum Burn Rates
In tandem with the rise in transaction fees, Ethereum’s daily token burning has seen a tremendous spike. On September 21, the daily burn rate hit an impressive 1,360 ETH, marking a 1,600% increase from just 80.27 tokens earlier in the month. This burning mechanism, introduced with the EIP-1559 upgrade, aims to decrease the supply of ETH by destroying a portion of the transaction fees, thereby enhancing the asset’s scarcity over time.
### Active Ethereum Accounts Reach Yearly Low
Despite the escalating fees and burn rates, the number of active Ethereum accounts has dwindled to around 385,000, the lowest it has been this year. This decline could indicate user dissatisfaction with the high fees, potentially driving smaller users away from the platform. It’s also possible that this decrease is part of a broader trend within the cryptocurrency market. The future will reveal how Ethereum plans to tackle these challenges, especially as rivals like Solana and Avalanche present more affordable alternatives.
### Ethereum Price Surges Over 14%
Ethereum has seen significant growth recently, rising more than 14% over the past week and surpassing the $2,500 threshold. It is currently trading around $2,645 and remains above the 100-hour Simple Moving Average. A robust support level is forming at $2,550 on the hourly chart. However, as it ascends, Ethereum faces hurdles around the $2,650 mark, which represents a critical level from its recent decline. The first major resistance point is near $2,680, with the next significant level around $2,720.