Abstract:
- Etherscan information confirmed the common price of Ethereum transactions rose as excessive as $15 on Could 4, a 1-year excessive.
- Gasoline charges on L2 networks additionally skyrocketed, notably on chains constructed utilizing zero-knowledge proofs like Polygon zkEVM and zkSync Period.
- Crypto members consider the memecoin renaissance led by PEPE coin is the primary motive behind costly transaction prices on crypto’s largest altcoin blockchain.
Gasoline charges on Ethereum flew to their highest degree since 2022 in the course of a memecoin renaissance championed by the “Pepe the frog” themed altcoin, PEPE.
The price of sending transactions rose as excessive as $15 on Could 4, its highest level in over a yr. Gasoline charges had beforehand stayed at decrease ranges within the months after Terra crashed and the crypto markets nosedived.
PEPE Buying and selling Propels Ethereum Gasoline Charges
Ethereum’s ecosystem is not any stranger to memecoin mania as tokens like Dogecoin and Shiba Inu have drawn speculative merchants earlier than. It’s unclear whether or not the PEPE token will final so long as these OG memecoins after hitting a $1 billion market cap, a subject that Binance weighed in on after itemizing PEPE for spot buying and selling right now.
Binance paused PEPE deposits shortly after citing technical difficulties.
There are additionally indicators pointing to PEPE as the explanation behind Ethereum’s expensive fuel charges. PEPE holders traded $150 million in quantity over the previous 24 hours on the decentralized trade Uniswap.
Elevated curiosity in PEPE pushed the token into the highest 100 cryptocurrencies by market cap. The token sits at #42 in line with CoinMarketCap. Nansen information clocked a number of copycat tokens and elevated buying and selling exercise tied to different memecoins on ETH’s chain.
Excessive Gasoline Charges Rock L2 Networks Too
Layer 2 networks designed to scale back transaction prices skilled excessive fuel charges as community demand shot up. Charges on layer 2 scaling options constructed utilizing zero-knowledge proofs like Polygon zkEVM and zkSync Period had been considerably greater than L2’s designed utilizing optimistic rollups.
Per L2 Charges information, the price of a single transaction on zk rollups ranged between $2 to $11, rising as excessive as $30.
Customers additionally flocked to Ethereum Digital Machine-compatible chains like BNB Chain as memecoin mania continued.