Since August, gas fees for transactions on Ethereum have fallen to their lowest level. They are still expensive.
Data sourced by Coin Metrics, and shared by CryptoRank Platform, shows that the seven-day moving mean cost of an Ethereum transaction was $11.14, which is back at the level of mid-last year. It soared to $55 at the tail-end of 2021.
Since Aug 2021, the cost of transactions on @Ethereum has been so low that it is no longer possible to do so. After staying within this range for 3 months, gas prices spiked. Experts attribute the rise to an increase in interest in the #NFT or #DeFi ecosystems.
— CryptoRank Platform (@CryptoRank_io
March 9, 2022
There appears to be very little network congestion at the time of writing. Etherscan data estimates gas fees to be around 30 Gwei ($1.53) to confirm low speed and 32 Gwei (1.64) to confirm high speed.
Data from Ycharts also show that Ether’s average gas price ( ETH) has been falling rapidly since the beginning of the year. It dropped all the way to 218 Gwei in Jan.10 and fell all the way to 40.82 Gwei as of Wednesday.
The Ethereum network’s decentralized finance (DeFi), nonfungible token (NFT), and decentralized crypto currency (DeFi) sectors are experiencing explosive growth. However, it has been criticized multiple times for its ridiculously high gas prices.
Lower congestion and lower fees are correlated to declining speculation or interest In NFTsandDeFi at the beginning of this year, compared to the end of 2021.
Related: Does DeFi’s future still belong to Ethereum?
DappRadar data has shown that nine of the top 10 Ethereum marketplaces have seen decreased trading volume over the past 30 days. LooksRare, OpenSea, and OpenSea saw their trading volumes drop by 78.27%, and 34.75% respectively. SuperRare, Rarible (73.29%) and 80.65% respectively are other notable losses.
DeFi, an Ethereum-based company, is also in trouble. Eight of the top ten projects in all-seeing Red have suffered in the last month in terms total value locked (TVL), and native asset token prices.