- ETH median fees nearly doubled in the last 24-hours
- Ethereum posted the second-highest transaction fees
- EIP 1559 could save Ethereum’s congested network
Ethereum news today – Despite the world’s current lock-down due to the Corona epidemic, it seems some digital assets have managed milestones in some aspects. For example, the ETH network has recorded the second-biggest transaction fees in one day as the overall market rushed to sell off their digital coins after its price went crashing by 40% as off March 12. Despite this situation, the median fees of Ethereum have nearly doubled in the last 24 hour period. Let us see how it cam to this.
Ethereum’s Transaction Fees Posted Record Highs
Two days ago, March 12, during the cryptocurrency carnage market, which saw an overall loss of nearly $50 billion in a matter of minutes, the price of Ethereum dropped from $196 to post intraday lows of $103. This drop is arguably one of the worst selloffs for the digital asset. All in all this commotion and the massive selloff ensured that fees on the Ether network hiked to reach its second-highest point in one day. The cause of this was that sellers clogged the ETH network with a huge number of bears looking to sell their holdings. Per data provided by Coinmetrics:
“Ethereum reportedly posted more than 5,112 ETH fees yesterday alone. This figure is the second-biggest total of all-time in a single day.”
Moreover, these median fees also spiked on March 12. At the time they topped the $0.2 mark. This point represented a 100% increase in median fees for a day. Fast transactions on the network took $0.3 in median fees. This further shows the impact of congestion on the Ethereum network.
Could the EIP 1559 Proposal Solve Ethereum’s Congestion Problems?
Many Ethereum users believed that the implementation of the EIP 1559 will tackle Ethereum’s congestion problems. This model is a rule change to fees that would reduce the rising transaction fees on the Ether network. It will also boost the adoption of the digital asset. The initiator of the proposal, Eric Conner, said:
“The proposal will introduce a fixed fee concept via the use of a MINFEE. The network’s users can pay a premium for this. But in general, the proposal simplifies the UX solution.”
However, the founder of the Ethereum network, Vitalik Buterin, is of the view that the EIP proposal change will be done to prevent the increasing prices. Here are his words:
“These fees would have still risen but the annoyance triggered by transactions pending for less time wouldn’t be as bad.”