Mem-Tokens Drive Ethereum Fees to Two-Year Highs
Growing network activity, linked to the interest in meme coins, benefits Ethereum investors by accelerating inflation reduction. However, it also complicates blockchain usage, as noted by researchers from IntoTheBlock.
During the period from March 2 to 9, fees in the Ethereum mainnet reached $193 million, marking the highest point since May 2022, with an increase of over 78% within a week.
Data: IntoTheBlock
Experts emphasize that this surge is largely explained by the growing popularity of meme tokens and an increasing number of speculative transactions. Over the past week, prices for coins like SHIB, PEPE, and FLOKI increased by 35%, 30%, and 95%, respectively.
According to DeFi Llama data, trading volume on decentralized Ethereum exchanges grew by 40%, reaching $20 billion.
Analysts note that due to the fee-burning mechanism, the supply of ETH decreased by 33,000 ETH (approximately $125 million).
IntoTheBlock adds: “While this is positive for Ethereum holders, the average transaction fee on the mainnet this week was $28, making the network impractical for many users.”
Experts predict a decrease in fees after the launch of the Dencun update, scheduled for March 13, especially in L2 solutions. One of the key elements of the update is EIP-4844, including the Proto-Danksharding option for scaling.
“Overall, there is still uncertainty regarding fee reduction post-Dencun update. However, it’s evident that gas costs driven by meme tokens will likely be significantly lower in L2, at least in the near future,” conclude researchers.
Previously, meme coins with misspelled celebrity names like Jeo Boden, Danold Tromp, and Olen Mosk sparked excitement among Solana users. As a reminder, K33 Research analysts identified signs of an emerging altseason in the meme coin rally.