Altcoins, Cryptocurrency

Ethereum Gas Fees Plunges: What’s In Store For Ethereum?

  • Ethereum (ETH) gas fees have nosedived to new yearly lows.
  • Transactions presently cost as little as three gwei, or $0.12.
  • The drop in gas fees can be associated with the price decline in ETH and market bearishness.

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Ethereum gas fees have plunged to their lowest in 2021. With average transactions now fetching less than one dollar

The current drop in the crypto market has seen ethereum transactions fall back down to cost-effective levels once more. 

Sunday marked the standard transaction fee required was just five gwei, or $0.15.

Source: Etherscan

Reinstating a price increase in Ether, the price struck an ATH of $4,372 on May 12. Gas fees had begun to surge as Ether’s price started to tick increasingly higher. 

Gas fees in May hit the month’s record of 300 gwei as traders appreciated bullish momentum throughout the non-fungible token (NFT), decentralized finance (DeFi), and decentralized exchanges (DEX) sectors.

Source: Etherscan

Still, the recent market correction that has seen Ether’s dip in price by more than 50% has observed the overall market slow down. The price drop has hit the market hard as demand declines. But the adverse price action has played positively in ETH gas fees.

The new yearly lows in transaction fees suggest traders can now spend as little as $0.12 on the ethereum blockchain transaction.

Ethereum DEX Volume Dipping

Other prominent signs of a drop in ETH gas fees are perhaps the decline in DEX volumes. Uniswap volume over the past 24 hours was sitting at $884.5 million. Down from its May 19 high. Which saw $2.62 billion in daily volume.

Source: Uniswap

As recently as February, Binance had reportedly spent close to $10 million in ETH gas fees as the network became overloaded. In addition, the surge in ETH volume and trading transactions saw Binance temporarily suspend ETH transactions on the exchange.

But it seems those problems are a far cry now that additional DEX’s have been created with much lower fees, such as Pancake Swap.

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