Meme Coin Craze Drives Ethereum Gas Fees Sky-High

Meme Coins Fuel Blockchain Activity

Meme coins like Shiba Inu, Pepe, and Floki have soared in value since March, leading to a surge in blockchain activity on Ethereum.

Ethereum Gas Fees Hit Two-Year Highs

The increased activity has pushed Ethereum gas fees to their highest levels in two years. This week, Ethereum’s revenue from network fees reached $193 million, with an annualized rate of over $10 billion.

Impact on Ethereum Supply

Ethereum’s fee-burn mechanism has also reduced the supply of ETH by 33k this week, worth approximately $125 million.

Meme Coins Benefit Ether Traders

The meme coin craze has benefited Ether traders, attracting more users to decentralized exchanges on Ethereum. Trading volumes on these exchanges have increased by 40% to $20.74 billion this week.

Gas Fees Surge

The average gas fee on Ethereum has risen to $28 this week, with a daily total of $38.02 million spent on gas fees on March 5th. This is the highest level since May 2023.

Ethereum’s Future Prospects

The high gas fees indicate that Ethereum is likely to continue benefiting from the meme coin activity. The total gas fee spent is now at an annualized rate of $10 billion, last seen before the crypto market crash in 2022. Ethereum’s price has also surged, reaching over $4,000 for the first time in two years.