{"id":6790,"date":"2021-12-10T09:11:29","date_gmt":"2021-12-10T09:11:29","guid":{"rendered":"https:\/\/newmoneyreview.com\/?p=6790"},"modified":"2022-01-08T09:30:21","modified_gmt":"2022-01-08T09:30:21","slug":"ethereum-fees-up-tenfold-in-five-months","status":"publish","type":"post","link":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/","title":{"rendered":"Ethereum fees up tenfold in five months"},"content":{"rendered":"

The fees collected by cryptocurrency miners for processing transactions on the ethereum network have rocketed more than tenfold in just five months, according to data firm CryptoCompare.<\/p>\n

\"\"<\/p>\n

Total monthly fees rose from $166m in June to $1.822bn in November, said CryptoCompare.<\/p>\n

The average ethereum transaction fee also rose by a factor of more than ten, said the firm, from $4.73 in June to $48.33 in November.<\/p>\n

Like the largest cryptocurrency network, bitcoin, ethereum uses a so-called \u2018proof-of-work\u2019 algorithm to reach consensus over network users\u2019 transaction activity<\/a>.<\/p>\n

In 2022, ethereum is supposed to move to a new consensus model, called \u2018proof-of-stake\u2019, in which users validate transactions according to how many coins they hold. In theory, this change should drastically reduce the energy consumption of the network.<\/p>\n

Ethereum\u2019s switch to proof-of-stake, first mooted in 2017<\/a>, has been repeatedly delayed, however.<\/p>\n

This year\u2019s sharp rise in ethereum fees reflects increasing activity in decentralised finance (\u2018DeFi) applications.<\/p>\n

DeFi\u2019s development has been closely associated with the cryptocurrency ethereum, which supports automated contracts with pre-defined protocols. These are referred to in cryptocurrency jargon as \u2018smart contracts\u2019.<\/p>\n

However, the uncontrolled expansion of DeFi projects has effectively overloaded ethereum, causing congestion and a rise in fees.<\/p>\n

According to the Bank for International Settlements (BIS), it recently cost as much as $160 to make a single transaction on ethereum using the Uniswap protocol, a popular DeFi market-making application.<\/p>\n

In the last year, DeFi activity has also spread to other cryptocurrency networks, such as Binance Smart Chain (BSC), Solana, Terra, Avalanche and Tron, as market participants seek to escape the high transaction fees on ethereum.<\/p>\n

The BIS warned in its December quarterly review, released earlier this week, that the DeFi market is unstable and could trigger a wider market crash<\/a>.<\/p>\n

The Basel-based institution said that episodes of rapid deleveraging, which occur regularly in DeFi, could spread to the broader financial market if a panic caused by a stablecoin \u2018breaking the buck\u2019 spread outside the cryptocurrency markets.<\/p>\n

\u201cPossible fire sales by a stablecoin of its reserve assets could generate funding shocks for corporates and banks, with a potentially severe impact on the broader financial system and the economy,\u201d the BIS said.<\/p>\n

Sign up here<\/a> for the New Money Review newsletter<\/em><\/p>\n

Click here<\/a> for a full list of episodes of the New Money Review podcast: the future of money in 30 minutes<\/em><\/p>\n

Related content from\u00a0New Money Review<\/em><\/span><\/p>\n

A cryptocurrency sceptic speaks out<\/a><\/p>\n

The hidden politics of cryptocurrencies<\/a><\/p>\n

Crypto’s wildfire growth creates run risks<\/a><\/p>\n

Ethereum network sees record congestion<\/a><\/p>\n

Binance CEO disowns smart chain scams<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The fees collected by cryptocurrency miners for processing transactions on the ethereum network have rocketed more than tenfold in just five months, according to data firm CryptoCompare. Total monthly fees […]<\/p>\n","protected":false},"author":4,"featured_media":6789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1012,1053,1026,1011],"tags":[1442,2084],"class_list":{"0":"post-6790","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-exchange","8":"category-featured-1","9":"category-latest-slider","10":"category-value","11":"tag-cryptocompare","12":"tag-ethereum-fees"},"yoast_head":"\nEthereum fees up tenfold in five months - New Money Review<\/title>\n<meta name=\"description\" content=\"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethereum fees up tenfold in five months - New Money Review\" \/>\n<meta property=\"og:description\" content=\"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network\" \/>\n<meta property=\"og:url\" content=\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\" \/>\n<meta property=\"og:site_name\" content=\"New Money Review\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-10T09:11:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-08T09:30:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"933\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"New Money Review Staff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@newmoneyreview\" \/>\n<meta name=\"twitter:site\" content=\"@newmoneyreview\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"New Money Review Staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\"},\"author\":{\"name\":\"New Money Review Staff\",\"@id\":\"https:\/\/newmoneyreview.com\/#\/schema\/person\/34c47dea9161c6b33d0ca38dc5972730\"},\"headline\":\"Ethereum fees up tenfold in five months\",\"datePublished\":\"2021-12-10T09:11:29+00:00\",\"dateModified\":\"2022-01-08T09:30:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\"},\"wordCount\":427,\"publisher\":{\"@id\":\"https:\/\/newmoneyreview.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg\",\"keywords\":[\"CryptoCompare\",\"ethereum fees\"],\"articleSection\":[\"EXCHANGE\",\"Featured\",\"Latest\",\"VALUE\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\",\"url\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\",\"name\":\"Ethereum fees up tenfold in five months - New Money Review\",\"isPartOf\":{\"@id\":\"https:\/\/newmoneyreview.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg\",\"datePublished\":\"2021-12-10T09:11:29+00:00\",\"dateModified\":\"2022-01-08T09:30:21+00:00\",\"description\":\"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network\",\"breadcrumb\":{\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage\",\"url\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg\",\"contentUrl\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg\",\"width\":1400,\"height\":933},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/newmoneyreview.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ethereum fees up tenfold in five months\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/newmoneyreview.com\/#website\",\"url\":\"https:\/\/newmoneyreview.com\/\",\"name\":\"New Money Review\",\"description\":\"A periodical covering the accelerating changes in money\",\"publisher\":{\"@id\":\"https:\/\/newmoneyreview.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/newmoneyreview.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/newmoneyreview.com\/#organization\",\"name\":\"New Money Review\",\"url\":\"https:\/\/newmoneyreview.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/newmoneyreview.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2018\/01\/cropped-nmr_close-crop.jpg\",\"contentUrl\":\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2018\/01\/cropped-nmr_close-crop.jpg\",\"width\":1418,\"height\":158,\"caption\":\"New Money Review\"},\"image\":{\"@id\":\"https:\/\/newmoneyreview.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/x.com\/newmoneyreview\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/newmoneyreview.com\/#\/schema\/person\/34c47dea9161c6b33d0ca38dc5972730\",\"name\":\"New Money Review Staff\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/newmoneyreview.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/dde30bd01b88010f95b116e674eb3b5b8ef18e77ebe766eceab195eb45d35934?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/dde30bd01b88010f95b116e674eb3b5b8ef18e77ebe766eceab195eb45d35934?s=96&d=mm&r=g\",\"caption\":\"New Money Review Staff\"},\"url\":\"https:\/\/newmoneyreview.com\/index.php\/author\/new-money-review-staff\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ethereum fees up tenfold in five months - New Money Review","description":"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/","og_locale":"en_GB","og_type":"article","og_title":"Ethereum fees up tenfold in five months - New Money Review","og_description":"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network","og_url":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/","og_site_name":"New Money Review","article_published_time":"2021-12-10T09:11:29+00:00","article_modified_time":"2022-01-08T09:30:21+00:00","og_image":[{"width":1400,"height":933,"url":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","type":"image\/jpeg"}],"author":"New Money Review Staff","twitter_card":"summary_large_image","twitter_creator":"@newmoneyreview","twitter_site":"@newmoneyreview","twitter_misc":{"Written by":"New Money Review Staff","Estimated reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#article","isPartOf":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/"},"author":{"name":"New Money Review Staff","@id":"https:\/\/newmoneyreview.com\/#\/schema\/person\/34c47dea9161c6b33d0ca38dc5972730"},"headline":"Ethereum fees up tenfold in five months","datePublished":"2021-12-10T09:11:29+00:00","dateModified":"2022-01-08T09:30:21+00:00","mainEntityOfPage":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/"},"wordCount":427,"publisher":{"@id":"https:\/\/newmoneyreview.com\/#organization"},"image":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage"},"thumbnailUrl":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","keywords":["CryptoCompare","ethereum fees"],"articleSection":["EXCHANGE","Featured","Latest","VALUE"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/","url":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/","name":"Ethereum fees up tenfold in five months - New Money Review","isPartOf":{"@id":"https:\/\/newmoneyreview.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage"},"image":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage"},"thumbnailUrl":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","datePublished":"2021-12-10T09:11:29+00:00","dateModified":"2022-01-08T09:30:21+00:00","description":"Ethereum fees are up more than tenfold since June, reflecting increased congestion on the cryptocurrency network","breadcrumb":{"@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#primaryimage","url":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","contentUrl":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","width":1400,"height":933},{"@type":"BreadcrumbList","@id":"https:\/\/newmoneyreview.com\/index.php\/2021\/12\/10\/ethereum-fees-up-tenfold-in-five-months\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/newmoneyreview.com\/"},{"@type":"ListItem","position":2,"name":"Ethereum fees up tenfold in five months"}]},{"@type":"WebSite","@id":"https:\/\/newmoneyreview.com\/#website","url":"https:\/\/newmoneyreview.com\/","name":"New Money Review","description":"A periodical covering the accelerating changes in money","publisher":{"@id":"https:\/\/newmoneyreview.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/newmoneyreview.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/newmoneyreview.com\/#organization","name":"New Money Review","url":"https:\/\/newmoneyreview.com\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/newmoneyreview.com\/#\/schema\/logo\/image\/","url":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2018\/01\/cropped-nmr_close-crop.jpg","contentUrl":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2018\/01\/cropped-nmr_close-crop.jpg","width":1418,"height":158,"caption":"New Money Review"},"image":{"@id":"https:\/\/newmoneyreview.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/x.com\/newmoneyreview"]},{"@type":"Person","@id":"https:\/\/newmoneyreview.com\/#\/schema\/person\/34c47dea9161c6b33d0ca38dc5972730","name":"New Money Review Staff","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/newmoneyreview.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/dde30bd01b88010f95b116e674eb3b5b8ef18e77ebe766eceab195eb45d35934?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/dde30bd01b88010f95b116e674eb3b5b8ef18e77ebe766eceab195eb45d35934?s=96&d=mm&r=g","caption":"New Money Review Staff"},"url":"https:\/\/newmoneyreview.com\/index.php\/author\/new-money-review-staff\/"}]}},"jetpack_featured_media_url":"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2021\/12\/friction.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/posts\/6790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/comments?post=6790"}],"version-history":[{"count":2,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/posts\/6790\/revisions"}],"predecessor-version":[{"id":6792,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/posts\/6790\/revisions\/6792"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/media\/6789"}],"wp:attachment":[{"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/media?parent=6790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/categories?post=6790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newmoneyreview.com\/index.php\/wp-json\/wp\/v2\/tags?post=6790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}