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Ethereum transaction fees rise

Transaction costs on the Ethereum network have exploded due to ERC-404.

By Luc Vesters
• 1 min read
Ethereum transaction fees rise

Ethereum transaction fees have surged because of ERC-404.

Data from Etherscan shows that an average Ethereum transaction on February 9th cost about $30. At the peak, the costs were even higher, at 377 gwei. The last time fees were this high was May 2023.

The reason for the high fees is the hype around a new token standard on Ethereum. ERC-404 is a mix of ERC-721 and ERC-20. The ERC-404 standard enables native fractionalization, letting not only a whole NFT be held but also the smallest fractions of an NFT to be held and traded.

ERC-404, however, is not an official Ethereum Foundation standard and isn’t deemed safe by the community.

The risk is correspondingly high. All tokens built on the standard are considered experimental, and anyone using them is exposed to unknown safety risks. Rug pulls, bugs, or other attacks can’t be ruled out.

Ethereum's transaction costs have fallen again. At the time of writing, a transfer costs 19 gwei, or one U.S. dollar.

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