Since August, gas fees for transactions on Ethereum (ETH blockchain) have fallen to their lowest level. They are still expensive.
Data sourced from Coinmetrics, and shared by CryptoRank Platform shows that the seven-day moving mean cost of an Ethereum transaction as at March 9 was $11.14. This is back in line with the levels 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 affordable. Gas prices rose after remaining within this range for 3 months. Experts attribute the rise to an increase in interest in #NFT/#DeFi ecosystems. https://t.co/oLDJyfSea2 pic.twitter.com/ieigvLT4Gz
— CryptoRank Platform (@CryptoRank_io March 9, 2022
At the time this article was written, there is minimal network congestion. Etherscan data estimates that gas fees will cost between 30 Gwei ($1.53) and 32 Gwei (1.64) for high-speed confirmations.
Ycharts data also showed that Ether’s average gas price has been falling rapidly since the beginning of the year. It dropped from 218 Gwei Jan.10 to just 40.82 Gwei yesterday.
The network’s outrageously high gas fees have been criticized multiple times amid the explosive growth of Ethereum’s Decentralized Finance (DeFi) and Nonfungible Token (NFT) sectors.
Lower congestion and fees are correlated to waning speculation and interest in NFTs or DeFi at the beginning of this year, compared with late 2021.
Related: Does DeFi’s future still belong to Ethereum?
DappRadar data has shown that nine of the top 10 Ethereum marketplaces have seen a decrease in trading volume over the past 30 days. LooksRare and OpenSea, respectively, lost 78.27% to 34.75%, respectively. SuperRare, Rarible and 80.65% were also notable losses.
DeFi, an Ethereum-based company, is also in trouble. Eight of the top ten projects are in all-seeing Red over the past month in terms total value locked (TVL), and native asset token prices.
DeFi project TVL losses: DappRadar