Ethereum Experiences a Massive Surge in Gas Fees

Ethereum gas fees have surged over the last month. In October 2023, Ethereum experienced a notable reduction in gas fees, reaching a new low. The decline was attributed to decreased activity in decentralized finance (DeFi), non-fungible tokens (NFTs), and various Telegram bots.

Major gas spenders, including industry giants like Binance and Coinbase and Layer-2 networks such as Arbitrum, Optimism, and Base, reduced their spending by 30% in mid-October. December 1, the introduction of the Buterin Cards NFT collection triggered a 13% increase in gas fees on the Ethereum network.

Transactions associated with this collection accumulated fees totalling 318.31 ETH in the past 24 hours, equivalent to $665,670. Notably, within three hours, transactions linked to the Buterin Cards NFT project contributed to over 13% of the total Ethereum network gas fees, surpassing fees from the Uniswap universal router address and Tether’s public address, according to data from Etherscan.

It shifted away from the energy-intensive proof-of-work (PoW) model, introducing staking and resulting in a noteworthy 99.9% reduction in energy consumption.

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