Ethereum Fees Touch Monthly Lows As Transaction Volumes Plummet
June 27 2022 - 7:00PM
NEWSBTC
Ethereum fees had touched new highs thanks to the popularity of the
decentralized finance (DeFi) space. As network activity had grown,
so had the transaction volumes. The effects continue to linger even
into the bear market, although fluctuations between low and high
are now more common in the space. Presently, transaction volumes
have fallen sharply and ETH fees have now plummeted to monthly
lows. Ethereum Transactions At $0.5 Ethereum transaction fees have
declined to one of their lowest points this year. Gas costs which
have been fluctuating between high and low seem to have found their
resting place at lower prices. In the early hours of Monday, the
gas costs for the Ethereum network had declined to their lowest
point for June. It sat at only 19.8 Gwei per transaction at the
time of this writing, which converted to about $0.5 per transaction
on the network. Related Reading | Bitcoin May Not
Reclaim All-Time High For Another Two Years, Binance CEO This
translates to a more than 80% drawdown from the peak of the gas
costs last week at 151.3 Gwei per transaction. This coincides with
a decline in transaction volume on the network, as shown on
Messari. The data aggregation website shows that Ethereum’s
transaction volume is down more than 80% from its monthly high. On
the 13 of June, transaction volumes on the network had sat at more
than $10 billion in real volume. Today, the real volume was sitting
at $570 million, the lowest it has been for the month. ETH price
declines to $1,179 | Source: ETHUSD on TradingView.com Supply has
also taken a hit in the month of June. By the end of last month,
there was more than 8.6% of all total ETH supply in DeFi. However,
as of the time of this writing, there is less than 8.3% of the
circulating supply in DeFi. This also translates to a dollar value
of under $10 billion when three weeks ago, the value was at $30
billion. ETH Profitability Tanks With the recovery in the price of
Ethereum has come some good tidings for investors. But, there is
still a gap in the profitability levels from last year compared to
this year. Going into the last month of the year in 2021, more than
80% of ETH investors had been swimming in profit. Given that the
digital asset had hit a new all-time high in November, this was
expected. However, there is a significant drawdown from this point.
Data from IntoTheBlock shows that while the majority of ETH
investors remain in profit, it is only by a small margin. 52% of
wallets are currently in the green while 47% are in loss. This puts
only 2% of all investors in the neutral territory, which remains
shaky. Related Reading | Bitcoin Perpetual Open Interest
Suggests Short Squeeze Led To Crash When it comes to the growth of
the network, there is more negative sentiment among investors. The
major reason for this is all of the competitors that are moving
into the DeFi and NFT space. Solana especially has been giving
Ethereum a run for its money in the NFT game, triggering an exodus
towards the network which offers faster transactions and lower
fees. Nevertheless, Ethereum remains the second-largest
cryptocurrency by market cap. Currently trading at $1,200 at the
time of this writing, the cryptocurrency boasts a market cap of
$149 billion. Featured image from CryptoSlate, chart from
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