Reading time: ~ 2 m
Average transaction fees on the Ethereum network have been dropping since November 7th, according to bitinfocharts.com. Two months ago, miners took $ 63 for transfers, now tokens and ETH can be sent almost three times cheaper by paying $ 22.
The main reason for the fall in user costs for transactions is clearly visible on the ETHUSD chart, since November 7, the pair has been in a downtrend, which has renewed its November lows.
On the other hand, the drop in the value of Ethereum in percentage terms was 9%, Bitcoin lost 40% of its value over the same period, the total cryptocurrency capitalization sank by 30%.
It is believed that the ETH rate kept from falling, thanks to the mechanism of burning part of the miners’ commissions, launched on August 5 with the introduction of EIP-1559 as part of the London hard fork. Since its inception by the time of Christmas on December 24th, 1 million ETH, or $ 4.2 billion, has been destroyed on the network.
The reduction in fees has spurred a renewed flow of funds to DeFi platforms. As can be seen from the graph compiled by analysts of the DeFiLama service, the TVL curve of investment in Ethereum smart contracts almost completely coincides with the fluctuations in the cryptocurrency rate.
If you add statistics on the average transaction cost to them, you can see how a decrease in this indicator to $ 20 will determine the price low of the downtrend. The coincidence of rate reversals with the level of optimal commissions clearly proves the role of DeFi as the main driver of the development of the cryptocurrency market.
Considering decentralized finance in separate areas, it is worth highlighting NFT. It was transactions with indivisible tokens that provided the largest volume of ETH flaring according to EIP-1559, exceeding all transactions in the Ethereum network in this indicator.
Operations on the Uniswap DEX exchange led to the irrevocable destruction of 92.6 thousand ETH, taking third place. In 4th place was the USDT token, which accounts for 56% of cryptocurrency exchange transactions. The fiat dollar is used only in 12.76% of transactions, the rest is occupied by other types of national currencies.
#average #commission #Ethereum #network #fallen #times
