Ethereum gas fees drop to lowest levels since August 2021

Since August, gas fees for transactions on Ethereum have fallen to their lowest level. They are still expensive.

Data sourced from Coin Metrics, and shared by CryptoRank Platform, shows that the seven-day moving mean cost of an Ethereum transaction as at Wednesday was $11.14. This is back in line with the levels of mid-last year. It soared to $55 at the tail-end of 2021.

Since Aug 2021, the cost of transactions on @Ethereum has been so low that it is no longer affordable. Gas prices rose after remaining within this range for 3 months. Experts attribute the rise to an increase in interest in #NFT/#DeFi ecosystems.
— CryptoRank Platform (@CryptoRank_io March 9, 2022

As of the writing, there is minimal network congestion. Etherscan data estimates that gas fees will cost between 30 Gwei ($1.53) and 32 Gwei (1.64) for a low speed confirmation.

Data from Ycharts also show that Ether’s average gas price (ETH) has been falling rapidly since the beginning of the year. It plummeted all the way to 218 Gwei in Jan.10 and then fell to 40.82 Gwei as of Wednesday.

The network’s outrageously high gas fees have been criticized multiple times amid the explosive growth of Ethereum’s Decentralized Finance (DeFi) and Nonfungible Token (NFT) sectors.

Lower congestion and fees seem to correlate with lower speculation or interest in NFTs or DeFi at the beginning of this year, compared to late 2020.

Related: Does DeFi’s future still belong to Ethereum?

DappRadar data has shown that nine of the top 10 Ethereum marketplaces have seen decreased trading volume over the past 30 days. LooksRare, OpenSea, and OpenSea saw their trading volumes drop by 78.27%, and 34.75% respectively. SuperRare, Rarible (73.29%) and 80.65% respectively are other notable losses.

DeFi, an Ethereum-based company, is also in trouble. Eight of the top ten projects in all-seeing Red have suffered in the last month in terms total value locked (TVL), and native asset token prices.

DeFi project TVL losses: DappRadar

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