Gas prices on the Ethereum network reached a peak of 270 gwei on Thursday, the highest level since June 2022. As a result, the cost of trading swaps surged to between $60 and $100 for a few hours.
Gas prices on Ethereum are measured in gwei, which is a small unit of ether (ETH) equal to one-billionth of an ETH. These prices are used to determine the fees that Ethereum users pay to ensure their transactions are included in the earliest block by network validators.
The spike in gas prices had a significant impact on trading costs. Traders had to pay higher fees to execute swaps, with costs ranging from $60 to $100 during the peak period. This increase in costs created a temporary barrier for traders, limiting their ability to engage in frequent and cost-effective trading.
While gas prices on the Ethereum network can fluctuate, the recent spike to 270 gwei resulted in a notable increase in trading costs. Traders were faced with higher fees, making it more expensive to execute swaps. It is important for traders to be aware of these fluctuations and plan their trading strategies accordingly to minimize costs and maximize profitability.
