Ethereum Fees Surge, EIP-1559 May Launch in July
Soaring fees are emerging as both a significant challenge and an opportunity for the Ethereum network.
According to OKLink data, on the evening of February 22 at 11 PM, due to extreme Ethereum volatility, unconfirmed transactions on the Ethereum network exceeded 150,000, and Gas fees surged to 1,900 Gwei as a result of network congestion, reaching an all-time high.
Eth Hub co-founder Anthony Sassano shared a screenshot from gasnow.org showing that users who selected the "Fast" mode needed to pay a $40 fee for their transfers to be confirmed within 1 minute, while users who chose the "Slow" option had to wait well over 10 minutes, with transfer fees surging to around $23.50.
On the other side of the high fees, Ethereum miners' revenue in February surpassed $1 billion for the first time, hitting a record high—a surge of more than 25% compared to January's $800 million, with trading fees accounting for approximately $541 million.
The surge in fees is closely tied to the flourishing development of the DeFi ecosystem on Ethereum. According to OKLink data, the total market cap of DeFi projects hit a record high of $111.79 billion on February 21, with a total value locked (TVL) of $55.32 billion.
However, due to Ethereum's congestion and prohibitively high fees, DeFi projects migrating to alternative platforms such as Polkadot and Cosmos is a phenomenon already in motion—a considerable challenge for Ethereum, which still needs several years to transition to the more scalable Ethereum 2.0.
Just 3 days earlier—on February 20—the long-awaited Berlin hard fork for Ethereum was officially put on the agenda. Developers plan to carry out the upgrade at block height 12,244,000 on April 14. This upgrade includes various contract optimizations covering Gas efficiency, updates to how the Ethereum Virtual Machine (EVM) reads code, and DDoS attack prevention, among others. It aims to enable the real-time transition from the PoW chain to the PoS chain, involving at least 5 EIPs: EIP-2565, EIP-2315, EIP-2929, EIP-2718, and EIP-2930.
In addition, on February 22, Ethereum developer Ryan Berckmans tweeted that the Ethereum EIP-1559 proposal will very likely launch in the London hard fork this July.
First proposed by Vitalik in 2018 and finalized in March 2019, EIP-1559 introduced a fee-burning mechanism (effectively reducing Ethereum's supply) and is considered "a key step for Ethereum to achieve monetary premium." It has become one of the most anticipated—and most polarizing—Ethereum upgrades ever.
Recently, due to expectations for Ethereum deflation and persistently high trading fees, discourse in support of EIP-1559 has grown increasingly popular. However, the miner community opposes it, arguing that this mechanism will burn away a portion of the trading fees that miners previously earned, cutting into their profits.
In an article titled "Opinion | EIP-1559 Is Futile and Brings No Benefits (Revised Version)" published on November 20, 2020, by Jian (the main contributor at Eth Fans), it was stated that EIP-1559 cannot make trading fees more predictable (because demand is unpredictable), nor can it lower Gas prices—therefore, it cannot deliver a better user experience.
Although controversy surrounds Ethereum's future development, OKLink's latest data shows that the Ethereum 2.0 deposit contract has received 3,208,400 Ethereum, accounting for 2.8% of Ethereum's current circulating supply. Ethereum 2.0 staking has led to a liquidity crunch, which may become a driving force behind Ethereum's long-term bullish outlook.
The number of active validators represents the count of users who have staked 32 Ethereum on Ethereum 2.0 and successfully activated as validator nodes. This metric reflects user support—especially from large holders—for the Ethereum 2.0 project. Data shows that the number of Ethereum 2.0 validators has exceeded 100,000, with an average daily increase of 500.
Glassnode data shows that the number of addresses holding 10,000 or more Ethereum is continuously increasing. It is clear that whales are actively accumulating Ethereum.
Of course, continuous institutional accumulation is also one of the factors driving optimism for Ethereum's future. Taking Grayscale's Ethereum Trust as an example: as of February 22, Grayscale Ethereum added nearly 223,400 ETH, with a total holding of 3,156,100 ETH, valued at approximately $6.114 billion. Besides Grayscale, many institutional investors have expressed optimism about Ethereum, including the CEO of Three Arrows Capital.
Additionally, CME's Ethereum futures launched as scheduled on February 8. According to The Block data, CME Ethereum futures contracts averaged 371 trades per day during the first week, with each contract covering 50 Ethereum, approximately 18,600 Ethereum in total. CME Ethereum futures have opened a new compliant channel for traditional investors to enter the market and have become a significant driver pushing Ethereum prices higher.
However, two days after Bitcoin and Ethereum both broke through their all-time highs, the upward momentum faced a severe challenge. Whether due to excessive profit-taking in the market or deeper-rooted reasons—uncertainties in the international landscape—as of 6 PM on February 23, Ethereum saw a 24-hour decline of 13.82%. From the all-time high of $2,041 on February 20, the total decline exceeded 25%, now hovering around $1,500. At the end of this article, we want to ask you a question: Are you bullish on Ethereum? Where do you think Ethereum will go from here in USD terms?
Disclaimer: Digital assets trading involves significant risk. This material should not be used as a basis for investment decisions, nor should it be construed as advice on engaging in investment trading. Please ensure you fully understand the risks involved and invest cautiously. OKX and OKX Academy only provide information for reference and do not constitute any investment advice. All investment activities by users are unrelated to this site.
Disclaimer
This article may contain product-related content not applicable to your region. This article is intended solely to provide general information and does not accept responsibility for any factual errors or omissions herein. This article represents the author's personal views and does not constitute the views of OKX. This article is not intended to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to purchase, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holdings in digital assets (including stablecoins) involve high risk and may fluctuate significantly, or even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For questions specific to your circumstances, please consult your legal/tax/investment professional. The information contained in this article (including market data and statistical information, if any) is for general reference purposes only. Although all reasonable precautions have been taken in preparing such data and charts, we accept no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or fewer may be used, provided that such use is non-commercial in nature. Any reproduction or distribution of the full article must prominently state: "This article is copyrighted © 2025 OKX, used by permission." Permitted excerpts must cite the article name and include the source, e.g., "Article Name, [Author Name (if applicable)], © 2025 OKX". Portions of this content may have been generated or assisted by artificial intelligence (AI) tools. Derivative works and other uses of this article are not permitted.
Show More
Recommended Reading
OKX Pay: Ushering in a New Era of Next-Generation Crypto Payments
Join tens of millions of users who choose OKX to enjoy an exceptional trading experience and a wide range of wealth management products. A letter from OKX CEO Star: Today, we are officially launching the first version of OKX Pay for over 100 million global users. As the first truly non-custodial and compliant payment application in the industry, OKX Pay will be embedded within the OKX App and is currently available in select markets, with a full rollout expected within months.
March 22, 2026
A New Chapter: Building the Next Generation of Financial Infrastructure Together
The partnership between OKX and the Intercontinental Exchange (ICE) represents a significant milestone for OKX and holds equally profound meaning for the evolution of the entire digital assets market. ICE builds and operates the world's most critical financial infrastructure, including the New York Stock Exchange and global derivatives and clearing platforms. This investment by ICE in OKX and its joining of our board reflects our shared conviction that digital assets technology will transform financial markets.
March 10, 2026
Looking Back on Another Year of Building
As CEO of OKX and a builder who stays true to his original vision, I take great pride in reflecting on the extraordinary growth and progress OKX has achieved this year. Despite the challenges, 2024 was a year defined by focus, innovation, and resilience. We not only expanded and improved our products, but also made significant strides in launching transparent and regulation-compliant localized businesses, while further strengthening our global management team. It is worth noting that after experiencing
January 29, 2026
2025: Steady Progress Toward Financial Freedom
— A Year-End Letter to Global Users from Star, Founder and CEO of OKX "Financial freedom" is often misunderstood. It does not mean the absence of rules, but rather having the freedom to choose—even in the presence of rules—and having a system that remains reliable and effective when truly put to the test. This is precisely what we focused on throughout 2025. First, I would like to extend my sincere gratitude to our global customers, partners, and regulators.
January 16, 2026
OKX Officially Launches in Germany and Poland
By Erald Ghoos, CEO of OKX Europe Today is a significant day for OKX—and for crypto users across Europe. We have officially launched a fully compliant centralized cryptocurrency trading platform in Germany and Poland! For us, this is more than geographic expansion—it is a commitment to building the future of cryptocurrency the right way: secure, transparent, and tailored to local needs. If you are in Germany
October 21, 2025
Partnership Upgrade! OKX and Standard Chartered Expand into the European Market
On October 15, Erald Ghoos, CEO of OKX Europe, stated that OKX is extending its strategic partnership with Standard Chartered to the European Economic Area (EEA). Earlier this year, OKX and Standard Chartered joined forces in the UAE, launching the Collateral Mirroring program—a
October 15, 2025
```
