Transaction fees on the Ethereum network have dropped again following a temporary increase on April 5 to $44 per transfer
Gas fees are payments given to the Ethereum blockchain by its users to cover the expenses of processing and validating transactions on the network. The volume of transactions between miners and Ethereum users has a substantial influence on these gas prices. Bitcoin miners may prioritize those who pay the most in order to speed up transaction completion. Encouraging consumers to pay more for the convenience of completing their transactions faster. The gas costs of other crypto are frequently lower than those of Ethereum.
Transaction fees on the Ethereum network have dropped again following a temporary increase on April 5 to $44 per transfer. After 12 days, average ether costs have dropped below $10 per transaction, while median-sized prices have dropped below $4 per transaction. Furthermore, layer two (L2) transaction costs have been decreased, with the lowest L2 charge currently being $0.03 per transfer.
The average network fee is a moving target, not an exact science, and it is constantly subject to change. It’s also not a hard requirement because the average fee just shows the average amount of ether consumers are willing to pay to get their Ethereum transactions validated right now. The median Ethereum transaction cost represents the fact that network users pay less than the average to get their Ethereum transactions validated. On April 17, the average ETH gas charge is 0.0010 ETH, or $3.49 per transaction.
This problem might be caused by the price of ETH and the volume of traffic on the network. Transaction fees are increasing as the value of ETH increases in relation to fiat currencies. Gas prices have risen as a result of the increased use of Ethereum decentralized apps. For example, when DeFi and NFTs were becoming increasingly popular in May of last year, the average gas price was as high as $69. The price of ETH increased in tandem with the increase in demand for NFTs, causing gas prices to rise.
DeFi application tracking and research service, NFT trading activity has declined dramatically in the previous 30 days. OpenSea and CryptoPunks, two major NFT exchanges, had a 39.60% and 29.55% reduction in 30-day trading volume for Ethereum, respectively.
