The cryptocurrency industry has recently seen Ethereum transactions fall back down as cost-effective levels. Its average transaction fee needed was reported just five gwei or $0.15 on Sunday.
On May 12 of this year Ethereum’s price hit an all-time high of $4,372 after a surge in the crypto complex. Gas fees on the network had begun to rise as Ethereum’s price started to go up higher and higher.
In May, Gas fees hit a high of 300 gwei as bullish momentum ran across the non-fungible token (NFT), decentralized finance (DeFi), and decentralized exchanges (DEX) sectors. All this popularity meant much higher gas fees.
Ethereum Transactions Fall Below $1 USD
The recent market correction that saw Ethereum drop in price by more than 50% isn’t popular with crypto bulls, but it has also driven down ETH gas fees.
Traders are now spending as little as $0.12 on a transaction on the Ethereum blockchain. With the huge fall in prices, the ETH network may become popular to use once again.
This is great news for anyone who needs to do ETH transactions, but it may impact projects that were becoming competitive due to high ETH gas fees.
Some blockchains that already use Proof-of-Stake are becoming competitive, but if this market slowdown lasts, they may falter.
DEX Fees are Also Falling
The decline in DEX is a notable sign of a decrease in ETH gas fees. Research by Diar said that DEX volume hit an all-time low in terms of USD traded value.
This may come as a relief to major exchanges that have struggled with high network fees. While higher prices have pushed more investors into the market, it has been taxing exchanges.
In February, Binance had reportedly spent close to $10 million in ETH gas fees as the network became overloaded. The surge in ETH volume and trading transactions led Binance to halt ETH transactions on the exchange.