Ethereum Fees Decline to June Low As Trading Volumes Fall Steeply
Because of the growing popularity of the decentralized finance (DeFi) industry, Ethereum transaction costs have reached all-time highs. Transaction volumes have increased in tandem with the growth of network activity. Even today, in the midst of a bear market, the repercussions are still being felt, despite the fact that swings between low and high are becoming more prevalent in the area. Both the number of transactions and the cost of using Ether have recently seen significant drops, causing the latter to reach new monthly lows.
The costs associated with conducting transactions on Ethereum have dropped to one of their lowest level so far in 2018. The price of gasoline, which has been moving between high and low levels on a fairly consistent basis, seems to have stabilized at lower levels. In the wee hours of Monday morning, the gas prices on the Ethereum network dropped to their monthly low point, which they had not seen since the beginning of June. At the time that this article was written, the transaction fee was just 19.8 Gwei, which, when translated to dollars, equaled to $0.5 for each transaction on the network.
This equates to a decrease of more than 80 percent from the top of the gas expenses which occurred the week before at 151.3 Gwei for each transaction. This correlates with a decrease in the amount of transactions that are taking place on the network, as can be seen on Messari.
A website that compiles statistics reveals that Ethereum’s transaction volume has dropped by more than 80 percent from its monthly peak. Transaction volumes on the network have reached more over $10 billion in actual volume as of the 13th of June. The actual volume dropped to its lowest point for the month today, lying at $570 million. This is the lowest point it has been all month.
The availability of the product has also suffered throughout the month of June. At the conclusion of the previous month, the entire supply of ETH held in DeFi accounted for more than 8.6 percent of the whole. On the other hand, as of the time that this article was written, there was less than 8.3 percent of the total supply in circulation in DeFi. This also equates to a financial worth of less than $10 billion, which is far lower than the value of $30 billion that it had three weeks before.
Investors have received some welcome news as a result of the recent appreciation in the price of Ethereum. However, there is still a disparity between the levels of profitability achieved in the previous year and those achieved this year. More than eighty percent of those who had invested in ETH at the beginning of the year 2021 were already swimming in profit as the year came to a close. This was to be anticipated given that the value of the digital asset had reached a fresh all-time high in the month of November.