Dogecoin Transaction Fees Surged By A Whopping 4,230% In 2021

Dogecoin DOGE/USD was the cryptocurrency with the highest increase in transaction fees in 2021.

What Happened: According to a study by Forex Suggest, Dogecoin fees surged 4,230% to $0.433 from $0.01 between Jan. 1, 2021, and Dec. 1, 2021.

Ripple XRP/USD recorded the second-largest increase in transfer fees which rose 3,810% to $0.00649 in 2021, while Ethereum ETH/USD saw a 1,459% increase. 

Forex Suggest attributes this to the high levels of demand for transacting over the smart contract network.  

Why It Matters: The massive fee surge can be attributed to Dogecoin’s popularity following numerous tweets from Tesla Inc TSLA CEO Elon Musk.

Still, the Dogecoin blockchain remains one of the lowest-cost blockchains today. Benzinga reported on Wednesday that a whale moved close to 263 million DOGE worth $29.6 million in a single transfer. This transaction was executed for just $0.11 in fees, data from the Dogecoin blockchain explorer shows.

See Also: Ethereum Fees Drop To A 7-Month Low: Here's Why

Ethereum remains the most expensive blockchain in terms of fees by a large margin. The average fee exceeded $50 for a single transaction, according to the report.

Bitcoin BTC/USD was the second most expensive blockchain despite recording a 29% decline in transfer fees over the year. The average fee on the Bitcoin network was still considerably lower than Ethereum at $4.09 per transfer.