Ethereum Network Fees (GAS) have dropped to their lowest level this year as crypto markets continue to consolidate.
One of the few advantages of the downtrend market is a decrease in demand for Ethereum and, as a result, a decrease in GAS fees.
According to BitInfoCharts, average transaction fee on the Ethereum network fell to $3,70, the lowest level since the end of December 2020.
The downturn in GAS comes less than a month after the average transaction fees hit an all-time high of $ 70. This happened on May 12, which coincided with a peak in the price of ETH of $ 4300 on the same day.
GAS prices are now at their lowest seen in 2021, but still more than 500% higher than they were at this time last year. According to the chart, in June 2020, the average transaction fee was around $ 0,60.
The move did not go unnoticed by Ethereum users, and one tweet was posted about the unambiguous GAS.
DeFi fees plummet
BitInfoCharts numbers are averages and gas fees can vary greatly depending on the nature of the transaction. Simply transferring an ERC-20 token will cost a lot less than interacting with a complex smart contract, especially in times of high demand.
Now Gas tracker Etherscan reports an average price of $ 2,35 per ERC-20 transmission. Average token exchange price Uniswap is about $7,23, and the high price for a faster transaction is about $12,24.
Adding or removing liquidity from a DeFi crop farm will cost an average of $ 6,33 and could be as high as $ 10,71, according to Etherscan.
In fact, these prices are still too high for the average user, who is likely to deal with much smaller amounts. As a result, many have moved to alternative platforms such as Binance Smart Chain, Polygon, and Flamingo Finance. On the other hand, cryptokits are unlikely to be a concern.
Ethereum price prediction
Ethereum prices could have affected the price of GAS as they are still consolidating. ETH is hovering between $ 2550 and $ 2850 this month and still largely echoes Bitcoin in terms of price movement.
At press time, ETH was trading just below $ 2800. It is recovering from its $ 2557 weekend low.
To break out of this range, the Ethereum price must start closing above $ 2900.