Ethereum Fees Surge as Active Accounts Hit Yearly Low

Ethereum transaction fees have surged in recent weeks, despite the number of active accounts on the network dropping to its lowest level this year. Earlier this month, Ethereum’s average transaction fee had dropped to its lowest since 2020, below $1 USD. This was long before major events like the proof-of-stake Merge or the launch of popular NFTs such as Bored Ape Yacht Club.

However, in just a few weeks, the seven-day moving average transaction fee jumped significantly, reaching $3.52 on September 21, more than triple its value at the start of the month. This spike also caused a major increase in Ether burns, with 1,360 ETH burned on September 21, marking a 1600% rise from earlier in the month.

Uniswap, particularly its V2 variant, led the list of the top gas-consuming contracts on the network over the last month. Other top users of Ethereum gas included Telegram-based bots like Maestro and Banana Gun, as well as transfers involving stablecoins such as Tether (USDT) and USD Coin (USDC).

Despite the rise in fees and the burn rate, the seven-day moving average of active accounts on Ethereum has plummeted to year-to-date lows, falling by 11% from earlier this month. As of now, about 385,000 accounts are active, the lowest since December 2023.

Ethereum has recently come under renewed scrutiny in the crypto community. The Ethereum-to-Bitcoin market cap ratio hit its lowest value since 2021, leading to discussions about Ethereum’s position. Bitwise CIO Matt Hougan referred to Ethereum as a "contrarian bet," reflecting the mixed sentiment in the market.

Moreover, Ethereum stakers are seeing their daily revenue hit a six-month low, highlighting the challenges the network faces, even as it remains the second-largest cryptocurrency by market capitalization.