After the frenzy for DeFi dapps, the Ethereum platform is beginning to see a rapid drop in the use of its network which has also resulted in the slump of Ethereum gas price.
According to Santiment, the plummeting of interactions on the ETH network began in the middle of September after the preceding months witnessed massive growth in market activities. DeFi farming opportunities like Uniswap drove these activities.
Ethereum gas price slumps
Ethereum gas prices have witnessed a massive drop since when it sold at an all time high of double digits between the month of August and early September.
Then, an average transaction fee was costing as much $50 but today, that price has dropped exponentially to the price it was before the frenzy began.
ETH gas station also reports that the ethereum gas prices are now at a standard of 40 gwei with high-speed transactions for 50 gwei. While Uniswap remains the major user of gas, having had transactions worth over $12million processed in the last month.
Ethereum on the rise again
Tradingview has reported that price of Ethereum had gained 12% in the market after it had sold at a low price of $335 dollar the previous week.
It is believed that if its current level of support remains, ETH could go on to sell as high as $400 again. Logan Han also projects that Ethereum could surpass its all-time high price in 2021 and that its prices will keep climbing in the short term.
Ethereum is widely regarded as a competitor to the leading cryptocurrency asset in the market, bitcoin. It also has experienced massive growth in use after the growth of DeFi apps on its platform, which boosted its use and acceptability among the Ethereum community.
DeFi applications are the new goldmine in the market until they experienced a crash in price recently which affected the industry.