The cost of moving Crypto on the Ethereum network is on its record high as some transactions on the Ethereum network require as high as over $100 gas fee to go through.

According to Ycharts’ report, the average Ethereum gas price as of 27th of February, 2021 stands at 158.44 Gwei.

It is very much difficult to overemphasize how the recent spike in Ethereum gas price has adversely affected ERC-20 projects in terms of running microtransaction payments on the Ethereum network

Currently, some transactions on the Ethereum network cost as much as $100 and this remains a big concern for traders as they spend a lot in gas fees.

Gas fees are the fees required for transactions to be executed and validated by miners. The gas fee is an essential part of the Ethereum network and is dynamic as it fluctuates depending on network demand.

Adebayo Juwon, African Lead at FTX, a leading crypto exchange in an exclusive interview with Nairametrics gave key reasons why such costs are usually high;

“Sometimes, a transaction can experience a delay or total rejection if it does not meet the miners’ threshold. This threshold is dependent on two factors-network usages and congestion. Congested networks benefit miners more as they can charge excessive-high gas fees.

“Paying as high as a $60 fee on a single Uniswap transaction or a $10 to $40 fee just to withdraw an asset from a cryptocurrency exchange nullifies one of the important goals of blockchain technology which is ensuring minimal transaction fees traditional financial systems,” Juwon said.

That is wholly responsible for why Ethereum miners are most certainly smiling to the bank now. This reaction is triggered by transaction costs on the Ethereum network recently reaching a new hourly record.

Data retrieved from Glassnode, a crypto analytics firm, revealed that ETH miners on the network earned a staggering $3.5 million in just one hour.

#Ethereum miners earned $3.5M (!) in a single hour – the highest hourly revenue to date.

Chart 👉 https://t.co/MYE72aEpgU pic.twitter.com/HHdWnMaEtK

— glassnode (@glassnode) February 5, 2021

Adebayo, however, revealed some Crypto exchanges like FTX  offer zero withdrawal fees to their users irrespective of the network an asset to be withdrawn belongs to.

What you must know: Ethereum Mining is a computationally in-depth work that requires a lot of computing time. An Ethereum miner gets rewarded for providing solutions to complex mathematical problems via blockchain technology.

At the moment, low capital traders may have no other option than to abandon blockchain transactions for the big guys because, in most cases, the little profit made may not be able to cover blockchain fees, especially during the withdrawal of crypto assets as all cryptocurrency exchanges charge standard Ethereum gas fee on all withdrawals.

The incessant hikes in Ethereum gas prices are turning the cryptocurrency ecosystem into an adventure exclusively for the Whales but fortunately, a thing like a Zero withdrawal fee ensures everyone has equal opportunity to be part of this ecosystem.

The prevailing market volatility at the crypto market led to heavy losses of global investors’ funds when roughly $70 billion worth of crypto positions evaporated into thin air within a day.

The downward trend gained momentum immediately after the flagship crypto touched below the $45,000 value amid several large sell orders placed around that price.

Crypto pundits alike breathed a sigh of relief during the week when Bitcoin managed to retake $50,000 — with some proclaiming that the asset had experienced “healthy correction.” But this narrative proved shaky when BTC plunged yet again on Friday to lows of $44,500. Other top Crypto assets including Ethereum, Litecoin were down more than 8%.

It’s key to note that most crypto assets are  often volatile because of their high use for financial gain and speculating advantages used by global investors and crypto traders.

As such, individuals and hedge funds sell and buy Bitcoin as they wouldn’t do for any other financial asset (stocks, bonds) with regulatory limitations.

The Crypto market had suddenly become overheated and record sell-offs began leading traders to lose about $2 billion.

• The global crypto market cap is $1.37 Trillion, a 5.66% decrease over the last day.
• The total crypto market volume over the last 24 hours is $127.95 Billion, which makes a 19.38% decrease.
• The total volume in DeFi is currently $9.80 Billion, 7.66% of the total crypto market 24-hour volume.
• The volume of all stable coins is now $105.38 Billion, which is 82.36% of the total crypto market 24-hour volume.
• Bitcoin’s dominance is currently 61.28%, an increase of 0.17% over the day.

At the time of writing this report, the flagship Crypto traded at $45,146.03 with a daily trading volume of $46.8 Billion. Bitcoin is down 5.37% for the day.

Sequel to the sudden correction seen in the Bitcoin market lately, it had been in on a bullish run relatively.

That being said, Nairametrics advises cautious buying in this fast-growing financial asset, as high market liquidity can expose you to significant losses and loss of funds. It’s highly recommended you seek advice from a certified financial advisor when buying these crypto assets.

Most Ethereum holders are surely having a good time with their returns seen lately from investing in the crypto asset. This is because over 96% of the circulating Ethereum supply is now in a state of profit.

Data seen by Nairametrics revealed that the number of Ethereum Percent Addresses in Profit (7d MA) just reached a 1-month low of 96.374%.

📉 #Ethereum $ETH Percent Addresses in Profit (7d MA) just reached a 1-month low of 96.374%

View metric:https://t.co/BUbkntqvVb pic.twitter.com/9jEDsvsMg6

— glassnode alerts (@glassnodealerts) February 28, 2021

Metric Description: The number of unique addresses whose funds have an average buy price that is lower than the current price. “Buy price” is here defined as the price at the time coins were transferred into an address.

The odds have been on the utility crypto side since its recent upgrade, Ethereum 2.0 is the much-awaited upgrade to the Ethereum (a network that promises better functionality and experience of the Ethereum network.

Unique features of the notable upgrades include a shift from Proof of Stake (PoS) to Proof of work, a new blockchain referred to as the beacon chain that provides better scalability All of this and more is expected to be phased in through a carefully planned roadmap.

Through the implementation of efficiency, enhancements, scalability and speed, the Ethereum network becomes better without compromising its decentralization and security.

Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without any fraud, interruption, control, or interference from a third party.

Breaking above the $1000 price support level represents a dramatic shift for the second most valuable crypto by market value, which stood at around the $112 price level at the end of Q1 2020 following the market carnage that took place as a result of the ravaging deadly virus.