As Ethereum surges over the four-figure price, transaction fees have followed suit. Gas prices to spike to their third-highest average price.
The beginning of 2021 is starting to resemble the beginning of 2018, at least where Ethereum prices are concerned. The world’s second-largest digital asset has surged in price to a three-year high of $1,100.
The massive move has added a whopping 35% to the price of Ethereum in just 24 hours.
Ethereum Market Cap Tops $100B
The big price pump has also pushed Ethereum’s market capitalization into twelve figure territory for the third time ever.
According to Coingecko, the ETH market cap peaked at $123 billion today. The last time it was this high was in January 2018, before the drawn out two-year bear market.
The all-time high for Ethereum’s market capitalization was on Jan 13, 2018, when it hit $140 billion as prices topped $1,400 for a brief moment.
Ethereum’s market share of the entire crypto ecosystem is now 12.5% according to Coingecko, with Bitcoin dominating a 68% slice of the digital asset pie.
Co-founder of Three Arrows Capital, Kyle Davis, has also turned bullish on Ethereum;
“I’m warming to $ETH, to be honest…I now have a basic understanding. I own it.”
Gas Fees Surge Again
With demand on the network reaching peak levels again, transaction fees have spiked, making smaller ETH transactions totally unfeasible.
As we’ve seen before, this will not bother the whales but smaller players will certainly feel the pressure.
Managing Partner at Multicoin Capital, Tushar Jain, explained the network effect;
“Ethereum is suffering from anti-network effects. Each new user makes the system less usable for other users by crowding them out. For example, it currently costs ~$100 in gas to trade on Uniswap. Simply sending some ETH around costs ~$10.”
According to BitInfoCharts, the average transaction fee has spiked to its third-highest level on record at around $11. Although, those that want their transactions to go through faster will pay much more than this.
ETH Gas Station is reporting a mean gas price of 220 gwei. As prices continue to march upwards, gas is likely to follow and a new all-time high could be just around the corner.