Lower fees on the Ethereum (ETH) blockchain.

The cryptosphere is in a bearish period and is the second largest in capitalization Ehereum (ETH) is no exception. This is an unusual situation for this blockchain which has always been criticized for its fees too high. Furthermore, this has created a lot of congestion and problems regarding the use of this ecosystem, according to its founder Vitalik Buterin.

The Ethereum network has extremely low fees as on-chain activity decreases

Why has the Ethereum blockchain been recording very low fees for a long time?

The low blockchain fees were highlighted on an Ethereum asset price chart on the Santiment On-Chain metrics platform. This helps explain that cryptocurrency experiences rare inactive behavior. We can also highlight the very low trading volume of yours stable currency COME ON.

Ethereum hibernates like a bear in winter waiting for a trigger. Low fees and low activity on the ETH blockchain are reminiscent of the similar situation in August 2021. The fees were therefore on average $ 5 for a transaction, representing an 80% drop from its high. There are three reasons for this drop in Ethereum fees.

  • The price of gas in Gwei and its quantity which affects the cost of a transaction. The price of the ETH token is equivalent to 10 ^ -9 or 0.000000001 ETH
  • The emergence of competing blockchains such as Solana and Avalanche
  • The demand for NFT is in sharp decline where Ethereum holds 95% of the market. As a result, investors have probably already gone on vacation during this bear market.

Signs of hibernation of the Ethereum blockchain

First, the speed of transactions is used to measure how quickly funds move through the cryptocurrency economy. Hence, the calculation of the transaction mass is obtained by dividing the daily transaction mass by the number of seconds in a day. Also according to the Santiment charts, it has drastically decreased. Incidentally, Ethereum’s gas costs fell to a low of $ 2.96 per transaction.

Transfer fees for Ethereum-linked platforms are down. Fees for a sale on the Opensea platform range from $ 10.63 for the high end to $ 10.26 for the lower rate. On decentralized exchanges or DEX sites like Uniswap, the fees are $ 9.69 at the maximum and $ 9.36 at the minimum. As with other second-level (L2) transactions, Zksync ether costs $ 0.04 to send and $ 0.09 to exchange. These fee reductions apply to all Ethereum assets such as Optimism, Arbitrum or Boba Network.

Conclusion

The decline in Ethereum activity via the stable currency DAI, for example, can dramatically reduce blockchain fees. Investors are happy and can benefit from using it. Plus, it helps expand the Ethereum ecosystem list for an easier transition version 2.0.

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Emilio Stantina

Interested in investing and financial markets after a business school in Chambéry, the passion for cryptocurrencies was evident. The blockchain is certainly the universal tool of tomorrow.

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