The Ethereum blockchain continues to face issues of high gas fees. Nansen, an Ethereum gas fee tracking platform, revealed that Ethereum gas fees have been on the rise. On the day, median gas fees reached 250 gwei (over $9).
Ethereum investors sight incoming risks
The gas fee has been increasing on the back of an increased number of transactions on the Ethereum blockchain. The biggest gas fee spenders in the last 24 hours have been DeFi crypto lending protocols. Over 18% of the spent gas fees originated from Uniswap, while 1inch and AAVE accounted for 3.43% and 3.20% of spent gas fees respectively.
The data indicates that investors are preparing for risk amidst falling Ether (ETH) price. Per data from Block Analytica, around $510 million in collateral liquidations will occur at an ETH price of $2082.
However, the current gas fees seem to be cheaper than previous months in dollar terms. In December, the median gas fee was around $22 according to data from BitInfoCharts. In January as well, gas costs were on average around $15 per transaction.
Meanwhile, the network plans to completely alleviate volatile gas fees with the arrival of ETH 2.0. The network expects that the migration to proof of stake later this year will bring more predictable gas fees.
Ethereum (ETH) continues trading downward
The price of ETH has been shed over $700 in the last two weeks, falling -24.8%. On the day, Ether is changing hands at around $2,300, down -13.11% at the time of writing.
The current price is an over 50% drawdown from the ETH allall-timeice. Many market pundits, including the founder of Ethereum, Vitalik Buterin, have warned that the entire crypto market may have to bear a prolonged bear market. Bloomberg’s analysts also previously warned that the risk exists that the price of Ethereum could test levers around $1,700.
However, there are still bullish predictions for ETH. A panel of fintech specialists at Finders, a crypto comparison site, predict that 2022 could see an ETH price of $5,000.
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