- Ethereum gas fees reached a 10-month high in the past week.
- The recent spike in gas fees on the Ethereum network is mainly due to the XEN token.
- XEN token consumed up to 90% of gas per block in single transactions.
Ethereum gas fees reached a 10-month high in the past week. According to a software engineer with the Twitter identity Cygaar, the recent spike in gas fees on the Ethereum network is mainly due to the XEN token. He noted that the token consumed up to 90% of gas per block in single transactions.
Cygaar then noted the importance of EIP4844 and Layer 2 protocols for scaling Ethereum. According to him, such implementations would prevent situations where single apps will be responsible for spiking gas fees for everyone else using the network.
Further, Cygaar cited a report that describes the EIP4844 upgrade as a viable solution for a gas fee reduction on the Ethereum network. The report claims the upgrade will introduce data availability rollups that reduce fees and more transaction throughputs. The EIP4844 upgrade would reduce the cost of layer 2 rollups by 10-100x and usher in a new era of low-cost onchain activity.
Aside from Cygaar’s deductions, the reappearance of seemingly profitable meme tokens is reportedly responsible for the gas fee spikes experienced on the Ethereum network in the past week. Throughout the week that ended on April 22, 2023, gas fees on the Ethereum network climbed as high as 73%. According to the market intelligence platform, IntoTheBlock, the Ethereum network earned a whopping $66.7 million due to the spike.
Meme tokens are famous for high volatility and significant price rallies and drop over short periods. Some of them that heralded last week’s surge include PEPE, with a market cap that made a 100x return in just a few days. AIDOGE increased by over 7,000%, while the latest focus is on REKT.
ETH circulating supply has also increased significantly, according to data from Santiment. That suggests the transactions involved a lot of ETH tokens, even though the meme coins appear to be in correction as of the time of writing.