Ethereum transaction fee is rising, leading to a high possibility of the beginning of another season of increased DeFi dominance in the cryptocurrency industry.
Over the past few weeks, Ethereum has been quite in the news with its 2.0 launch slated for December 1st release. Ethereum transaction fees reached a maximum of $7.70, which is viewed as a result of the increased transactional demand.
Ethereum Transaction Fee Hike
As the Decentralized finance space continues to grow exponentially, attracting high-value investment, Ethereum has been the pivot of all the growth. In 2020, Ethereum has given substantial profits to its token holders, showcasing a parabolic growth even beating BTC, which has been highly bullish this year. Ethereum has increased by over 350 percent, creating opening doors for many applications to be built on the platform.
As the decentralized exchanges continue to increase, Ethereum propels the DeFi to a phase of growth even though BTC is rallying towards its pinnacle.
The price of Ethereum fell substantially below $500 on November 25th; however, there was an increase in the trading volumes. Due to downward movement, the Ethereum gas price surged, increasing the transactional fees to a level that it is right now higher than that of Bitcoin.
The crypto watchers are curiously awaiting an altcoin season since most of the altcoins have not touched their all-time high in the recent past, even though BTC is rallying. A theory suggests that with Bitcoin prices raging to an enormous high, the investors may be attracted towards alternatives to gain more profit, which may help other tokens to gain momentum.
Ethereum 2.0 launch has created quite a hype for the ETH token, increasing the demand for the same; however, the price drop was also seen. With the increase in the transaction fee for Ethereum, it is interesting to see how the markets respond.
Ethereum struggles to maintain the $600 mark falling from the sudden hike it achieved last week to touch $620.
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