15.5 C
July 24, 2024
BTC Hunts
Image default

Commissions on Ethereum are at almost 2-year lows

The average commissions that must be paid to make transactions on Ethereum have been decreasing for weeks. Last July 31, these reached USD 0.61 on average, a figure that has not been observed since Sunday, November 29, 2020, the day on which operating on the network came to cost approximately USD 0.44.

According to data from the analytics firm Glassnode, Ethereum commissions averaged $1.32 last Monday, August 8th. In the previous seven days, the value had hovered around the dollar, and was even below on several occasions.

Situation it contrasts clearly with what was happening on the network during 2021 and part of 2022. As has been reported in Criptonews, the congestion of Ethereum caused the fees to skyrocket to tens or even hundreds of dollars to perform a single operation.

In this sense, the highest point was given in May 2021, when a commission of about USD 34 had to be paid, on average, to use Ethereum. Also in November there was a similar peak in terms of these metrics.

Regarding the reasons for this low, the main one has to do with network activity. In times of bear market, demand has been reduced and this frees up space in Ethereum, making it cheaper to use.

Since January 2022 to date, commissions on Ethereum are coming down. Source: Glassnode

Falling ETH price also favors low commissions

It should also be noted that, when measuring commissions in dollars, they are affected by the falling market price of ether (ETH). The cryptocurrency, with which the commissions are paid in Ethereum, has a value of USD 1,756 according to the Crypto News price index at the close of this note. That figure is a far cry from the nearly $3,800 the crypto asset was worth 14 months ago.

Related posts

The date for the Ethereum 2.0 merger is already on the discussion table

Leslie Kim

Chainlink will not support Ethereum forks

Leslie Kim

Tornado Cash, USDC and Github expose centralization around cryptocurrencies

Leslie Kim