Ethereum fees have reached new heights thanks to the popularity of the field of decentralized finance (DeFi). As network activity grew, so did the volume of transactions. The effects continue to be felt even in a bear market, although swings between low and high are now more common in the space. At present, transaction volumes have fallen sharply and ETH fees are now at their lowest monthly levels.
Ethereum transactions at $0.5
Ethereum transaction fees have fallen to one of their lowest points this year. Gas costs, which used to fluctuate between high and low, seem to have found their place in low prices. In the early hours of Monday, gas costs for the Ethereum network fell to their lowest level in June. Gwei settled at just 19.8 per transaction at the time of writing, which has turned out to be around $0.5 per transaction on the network.
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This translates to a drop of more than 80% from last week’s peak gas costs of 151.3 Gwei per transaction. This coincides with a decrease in the volume of transactions on the network, as shown by Messari.
The data aggregator site shows that the volume of Ethereum transactions has fallen by more than 80% from its monthly high. On June 13, transactions on the network amounted to more than $10 billion in real volume. Today, the actual volume was at $570 million, its lowest level during the month.
ETH price declines to $1,179 | Source: ETHUSD on TradingView.com
The show has also been damaged In the month of June. By the end of last month, there was more than 8.6% of the total ETH supply in DeFi. However, at the time of writing, there is less than 8.3% of the circulating supply in DeFi. This also translates to a dollar value of less than $10 billion when it was $30 billion three weeks ago.
ETH . Profitability Lockers
With the price of Ethereum rebounding, there is some good news for investors. But, there is still a gap in profitability levels from last year compared to this year. As the last month of the year approaches 2021, more than 80% of ETH investors have been swimming in profits. As the digital asset hit a new all-time high in November, this was to be expected.
However, there is a major drawback on this point. info from IntoTheBlock He explains that while the majority of ETH investors are still profitable, it is only by a small margin. 52% of portfolios are currently in green while 47% are at a loss. This puts only 2% of all investors in neutral territory, which is still shaky.
When it comes to network growth, there is more negative sentiment among investors. The main reason for this is all the competitors moving into the DeFi and NFT space. Solana in particular has given Ethereum a chance to get its money into the NFT game, which has led to a mass exodus towards a network that offers faster transactions and lower fees.
However, Ethereum remains the second largest cryptocurrency by market capitalization. The cryptocurrency is currently trading at $1,200 at the time of writing, and the cryptocurrency boasts a market capitalization of $149 billion.
Featured image from CryptoSlate, chart from TradingView.com
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