The Current State of Ethereum is Very Cheap
In a matter of two weeks, the Ethereum blockchain has gone from extremely expensive to use to now being very cheap.
During the recent market sell-off, as people rushed to sell their coins or were forced to sell their cryptos, made some attempts to buy the dips, and opened short to take advantage of the opportunity, the gas prices on the second-largest network skyrocketed to a record high that eclipsed 2000 gwei on Black Wednesday.
But now, as the activity in the market has died down, the fees have come down drastically.
As of writing, 26 gwei is the average gas price, as per Blockchair.
Also, the average fee on the network in USD is currently at less than $4.5, down from $72 on May 19.
If gwei hits single digits again, I might just release one of the four new protocols (five as of this morning thanks to Ben)
— Andre Cronje (@AndreCronjeTech) April 25, 2021
In the past 24 hours, the Ethereum network degenerated $6.3 million in fees compared to $117 million on May 11th and $26 million a day early last month, as per Coin Metrics.
These levels were last seen after the DeFi mania was over and before the bull rally of 2021.
In 2020 summer, DeFi and Uniswap mania sent the fees higher; this time, a huge sell-off and doge-inspired meme crypto-like SHIB tokens were the main drivers. ETH price surging to a new all-time high of $4,380 also contributed, which is now at $2,550.
The growing decentralized finance space is certainly the biggest factor that keeps these gas prices elevated as the largest DEX by volume Uniswap is the biggest gas guzzler on Ethereum.
The popular DEX’s both version V3 and V2 at $2.5 million and $1.5 million, respectively, are earning more than Bitcoin’s $1.3 million daily fees separately, as per Crypto Fees.
Some are seeing the low activity and calm in the market; this pre-DeFi summer levels as a prelude to maybe another DeFi summer. But that remains to be seen as the market continues its sideways action, looking for a strong catalyst to decide its next direction.ETH -6.71% Ethereum / USD ETHUSD $ 2,919.38
-$195.89-6.71% Volume 24.82 b Change -$195.89 Open $2,919.38 Circulating 117.66 m Market Cap 343.48 b 1 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 2 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August 20 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees