Ethereum transaction fees are increasing due to increased activity again. While they are far from the $4+ fees seen in January, it appears that some phenomenon is causing them to reach levels we have not seen since the beginning of March.
The current rate of an ETH transaction right now is just above $0.60. It has been on a steady climb since early April after plummeting since the beginning of the year.
Looking carefully at the situation, the culprit seems to be the decentralized application (DApp) ecosystem that’s been receiving much attention over the last few weeks.
Still, at this moment, we’re not seeing any sign that the network would be bogged down like it was back when CryptoKitties—one of the first DApps on Ethereum—ground everything to a halt in December and even made Gemini block deposits and withdrawals.
In that particular case, CryptoKitties took up about 20% of the entire transaction volume within the Ethereum blockchain. This extensive proportion has never been seen from DApps since then.
However, if these applications manage to reach a certain threshold of transactions, we might once again see the Ethereum network clog up. So far, we know of no permanent solution implemented to prevent such a thing from happening again.