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High Ethereum transaction fees reverse to $2 million in three weeks

cryptocurrency

Ethereum network users have been complaining since the recent months about the expensive transaction fees which plagued the Blockchain amid the massive rush in decentralized finance (DeFi). However, information today shows that Ethereum transaction fees have been dropping for the past three weeks. This comes as the network also sees a decline in activities.

Is Ethereum transaction fees normalizing?

As reported on Monday, data from the popular on-chain analytics platform, Glassnode, shows that Ethereum transaction fees have significantly dropped in less than three weeks, starting from September 17 to October 4. On the former date, Ethereum miners generated a total of 42,763 ETH, which is about $15 million following the current price of ETH at $352.

However, the profits generated by miners from Ethereum transaction fees shaded massive points within three weeks to 5,898 ETH as of October 4, which is about $2 million. The development reportedly accounts for an 86.2 percent decline in daily transaction fees within a period of three weeks. Likewise, the average fee for Ethereum transactions dropped from $11.62 to $2.1 within the same time. 

One might say that the Ethereum network is somewhat returning to normalcy, and cheaper to use. However, it remains uncertain if this record will be maintained for a long time, or whether it is just for the meantime.

What’s behind the drop

Starting with the most factor behind the recent surge in transaction fees, the hype in the decentralized finance industry seems to have calmed down in recent weeks. More so, some of the popularly-traded DeFi tokens took a big hit last week, as Uniswap, Yearn Finance, and UMA tokens recorded about 27.6 percent, 41.2 percent, and 28.5 percent drop, respectively.

Besides this, the overall transactions on the network dropped from 1.32 million as of September 17 to 935,000 on October 4. This represents a 29.2 percent drop. Also, the values of these transactions dropped by 74 percent, from 6.5 million Ether to 1.7 million Ether. 

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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