Ethereum Fees reach a 6-10 months low!
On the Daily Chart With the current price of Ethereum being at $1,879.2, ETH is struggling at a descending line that has provided both support and resistance for more than a year.
The average Ethereum network fee has dropped to the lowest value recorded in over ten months, after fees hit a low of $2.96 per transaction . The last time ethereum transfer fees dropped below the $3 mark was last year on July 11, 2021. Moreover, median fees are even cheaper, as the median-sized ethereum transaction fee on May 29 is around 0.00086 ether or $1.56 per transfer.
Some media outlets are reporting that a drop in NFT transactions is a reason for the drop in ETH gas fees, but that doesn't seem to be the case. If you look at the last 30 days of activity on the definitive site for NFT metrics -- NonFungible.com -- the number of NFT sales is up more than 565%, sales revenue is up 231%, and active wallets are up 280%.While not financial advice, and keeping in mind that you should always do your own research and only invest what you can comfortably afford to lose, if you're looking to buy your first NFT you can save a lot on transaction fees right now.
The cost to move an ERC20 token like USDT or USDC, is about $4.37 per transfer. In terms of Ethereum’s aggregate 24-hour ETH mining rewards, miners pulled in approximately $50,241,489 on Sunday, May 29. That’s around 94.7% of the fees bitcoin (BTC) miners acquired on Sunday, as bitcoin miners captured $53,035,200 in BTC mining rewards during the past 24 hours.
There are likely several contributing factors to the lower usage of the Ethereum network and the corresponding drop in fees. One of the most popular drivers of volume on that network for more than a year has been for decentralized finance (DeFi) activity. When DeFi initially launched, Ethereum had more than 90% share of the traffic. According to DeFi Llama, the DeFi dominance of the ETH blockchain is waning. Users have been moving transactions to other blockchains with cheaper fees as seen in their share below of the current DeFi market:
Ethereum: 54%
Terra: 13%
Binance Smart Chain: 6.0%
Avalanche: 5.5%
All others: 22%
Boba Network’s ether transaction fees are $0.17 right now, and the cost to swap a token using Boba is $0.35. When ETH fees are low, it’s a good time to transact if there’s a need to move ethereum or an ERC20, swap tokens, or conduct a sale on a non-fungible token (NFT) marketplace.
Ethereum network fees are the cheapest they have been in over ten months and around 12 p.m. (ET) on Sunday, the average ETH transfer fee slid to a low of $2.96 per transaction. As the day continued on, average ether fees have jumped a bit higher to 0.002 ether or $3.56 per transfer.Ethereum’s transaction fees have not been this low in quite some time. Bitcoin.com News has been covering the fact that gas costs have been dropping since mid-February and during the first week of March, ethereum transaction fees slid to just above the $10 mark.
The last time average ETH fees dropped below $3 was on July 11, 2021, or roughly ten months ago. In fact, during a few weeks in July 2021, average gas costs using Ethereum’s layer one (L1) network were between just under $3.00 to just above $8.00 per transfer.In addition to average ethereum fees dropping to fresh lows, median-sized gas costs have dropped a great deal this week as well. For example, on March 8, 2022, the median-sized ether fee was 0.0014 ETH or $3.73 per transfer, and today it’s 0.00086 ether or $1.56.
DISCLAIMER: I am not a financial advisor nor certified analyst. All contents discussed on this blogpost are solely my own personal views and ideas concluded after some research education/entertainment purposes only . Do your own research and due diligence.
