ETH gas fees drop to annual lows of less than 1

ETH gas fees have dropped to a 2021 low, with average transactions now costing less than $ 1.

The recent decline in the crypto market has caused Ethereum transactions to fall back to cost-effective levels.

Today the average transaction fee was only 5 gwei, or $ 0.15.

Source: Etherscan

After Ethereum prices skyrocketed, hitting an all-time high of $ 4,372 on May 12, gas fees began to rise too.

Gas fees peaked at 300 gwei in May as market participants enjoyed the momentum of non-fungible tokens (NFTs), decentralized finance (DeFi), and decentralized exchanges (DEXs).

Source: Etherscan

However, the recent market correction that saw the Ethereum price drop more than 50% has slowed the overall market. The decline hit the market hard as its popularity fell, but the negative price action favored ETH gas fees.

The transaction fees, which hit a new annual low, mean traders now only have to spend $ 0.12 to trade on the Ethereum blockchain.

Other notable signs of a decline in ETH gas fees are likely a decline in DEX volume. Uniswap volume in the past 24 hours hit $ 884.5 million, less than the May 19 high. The daily trading volume reached $ 2.62 billion.

Source: Uniswap

As recently as February, Binance reportedly spent nearly $ 10 million in ETH gas fees when the network was overloaded. The increase in ETH volume and transactions caused Binance to temporarily suspend ETH transactions on the exchange.

But it seems that these problems are far away as additional DEXs have been created with much lower fees, such as the pancake swap.

Annie

According to Beincrypto

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