Ethereum Fee Averages Remain Above $30 Despite 35% Drop. Price Pump Incoming?
January 20 2022 - 12:00PM
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Ethereum fees remain high as the network continues to see some of
the highest traffic in the industry. Daily transaction volumes put
Ethereum in the billions per day and all of these transactions
carry a higher than average fee. This fee structure which has
caused concern among users seems to not be going anywhere, but
there looks to be a light at the end of the tunnel. Recently, the
average transaction fee for Ethereum transactions has dropped
significantly. In the past week, the average transaction fee for
ETH transactions topped 35% in total, but it still remains on the
high side compared to other blockchains. Ethereum Fees Are Down
Data from BitInfoCharts shows that Ethereum fees are down over the
past week. It correlates to a 35% drop in fee rates, however, the
blockchain remains one of the highest in terms of fees. Leading up
to last week, transaction fees were averaging around $50 per
transaction. With the recent decrease, this number has now dropped
to $35 on average per transaction. Related Reading | Solo
Ethereum Miner Hits The Jackpot With 170 ETH For Mining A Block
This is expected given the amount of activity the blockchain houses
but it is still on the high side. According to this report,
Ethereum users are paying about $40 million in fees daily, whereas
rival Cardano only sees about $87K spend in fees on an average
despite recording almost identical transaction volumes as ethereum.
ETH trading at $3,257 | Source: ETHUSD on TradingView.com The
median gas fee for the network sits at about 0.0047 ETH or $14.78
for each transfer, considerably higher compared to other leading
blockchains in the space. ETH miners are also getting some of the
highest miner rewards, ahead of bitcoin miners. This fee structure
is a pain point that is expected to be addressed in the move to ETH
2.0 in the coming year. ETH Getting Ready For A Pump? The decrease
in transaction prices could spell good news for the digital asset.
With transaction fees tumbling, it would allow for faster
transactions. Also, with transaction fees down, it most likely
means that more investors are opting to hold on to their digital
assets rather than deciding to move them around, which could point
to consolidation and accumulation on the part of these investors.
Related Reading | American Rapper Lil Baby On Holding Bitcoin
And Ethereum Over Fiat With less ETH moving around on the network
and onto exchanges for sale, then supply on exchanges are down
during this time. Usually, notable recovery periods are preceded by
periods of stretched out accumulation, where investors choose to
pile on to their current holdings. This, in addition to the fact
that the price of the digital asset has been dropping for a while
and is primed for a correction, ethereum may be getting ready for a
bounce-back towards $3,500. Chart from TradingView.com
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