The rallies of Decentralized Finance (DeFi) tokens brought back high transaction fees on Ethereum, the parental network for the majority of these coins.
The fees of transactions on a world’s second-biggest cryptocurrency are on a roller-coaster again. After over 30% decrease last week, the Ethereum fees bounced back, however far higher than ever before.
According to the latest data of YChart, the cost of a single average Ethereum transaction reached the record highs of $7.37 today, August 13. The levels have never been seen before, although the network tested the highs of $3.94 earlier this June.
The significant surge started on August 9, when the average transaction fee reached $1.94 price per transaction. Since then the price kept steadily growing, increasing by almost 50% each day.
The growth accordingly brought back the joy to the Ethereum miners community. As claimed by the blockchain analytics Glassnode, over 42% of their revenue currently is coming from transaction fees.
The sudden surge in the transaction cost appears to indicate the increased activity on the Ethereum network. This respectively coincides with the current movements on decentralized finance (DeFi) protocols like decentralized exchanges Balancer or Uniswap.
Since the majority of DeFi tokens are built on the Ethereum network, the rallying DeFi tokens are the ones making an impact for the parental platform and bringing transaction fees to the new all-time highs.
Chainlink, the decentralized oracle network alone became one of the major value generators for the DeFi industry lately, increasing from $10.60 to $17.49 since August 8, or nearly 70% within 5 days, according to CoinGecko.
The lending protocols like Maker DAO also significantly contribute to the decentralized finance sector growth. As the total value locked in DeFi surpassed the $4.7 billion this month, Maker DAO became the solid leader with a $1.30 billion locked volume alone.