Ethereum Gas Fees Hit 20-Month Low Amid Market Downturn
Crypto Briefing | Jul 05, 2022 01:31AM ET
The average transaction fee on Ethereum mainnet is currently just over $2, its lowest price since November 2020. The ongoing slump in the crypto market has caused Ethereum gas fees to drop. There’s a silver lining to the crypto bear market for active Ethereum users. Gas fees on the top smart contract blockchain have plummeted to their lowest dollar price since November 2020, thanks to a decline in the price of ETH and network activity. According to Etherscan data compiled by YCharts , the average fee to make a transaction on the Ethereum network is currently 21 Gwei, the equivalent of 0.0021 ETH. With ETH currently trading at around $1,100, that comes to about $2.31.
Ethereum gas fees skyrocketed to record highs throughout 2021 as ETH rallied along with the rest of the crypto market. An explosion of interest in NFTs contributed to the rise as most non-fungible asset trading happened on Ethereum. At the height of the market frenzy dubbed NFT summer, minting NFTs set users back hundreds of dollars. More complex transactions came in even higher as the network became increasingly congested. As a result, alternative Layer 1 blockchains like Solana, Avalanche, and the ill-fated Terra soared by enticing users, many of them speculators in the retail market, with lower transaction fees.
Since Ethereum and the broader crypto market peaked in November 2021, gas fees have steadily declined. ETH has lost 77% of its dollar value since the peak, which means the dollar cost per transaction has also fallen. Ethereum transactions came in under the $2.50 mark in November 2020, when ETH traded at around $500.
Get The News You Want
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.