Ethereum Gas Price Records Nine-Month High Driven by Recovering NFT Market

02/28/2023 01:36 • Metaverse Matters • 85 views

According to the news on February 28, the recovery of the NFT market pushed the cost of Ethereum gas to 38 gwei in February, a new high in the past nine months. The median price of Ethereum gas in the past nine months has basically remained in the range of 10-20 gwei, reaching 36 gwei only when the FTX crashed in November, and 24 gwei only when the “money security run” in December.

Data: The median price of Ethereum gas rose to 38 gwei in February, hitting a new high in the past nine months

Analysis based on this information:

The past few months have seen an impressive resurgence of the non-fungible token (NFT) market. This rise has positively affected the costs of Ethereum gas as it pushed to a new high in the past nine months. According to recent news, the median price of Ethereum gas has been almost consistent, ranging from 10 to 20 gwei, with the exception of November’s FTX crash, where it reached 36 gwei, and December’s “money security run,” where it hit 24 gwei. The Ethereum gas price is always in flux due to different factors such as network demand, transaction size, and miner activity. However, the recent surge in the NFT market has majorly impacted the price of Ethereum gas.

Ethereum gas is the cost of executing transactions on the Ethereum network. Every action on the platform requires a precise amount of gas, which is then paid in ether (ETH). As the NFT market booms, transaction volume on the Ethereum platform increased dramatically, leading to an increase in the price of gas. The rise in demand has led to a competition among users to outbid each other to get their transactions validated first by Ethereum miners. The result is that users with more significant gas fees get priority, leaving those with lesser fees to have their transactions stuck in an unconfirmed state. This competition pushes the gas price to new highs, as observed in February when the cost of Ethereum gas went up to 38 gwei, a new nine-month high for the platform.

In conclusion, the recovering NFT market is positively influencing the cost of Ethereum gas, expectedly helping boost the ecosystem’s overall value. However, with the challenges of increased gas fees, the Ethereum community will have to keep innovating new ways to keep the platform sustainable and accessible to all.

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