The recent crypto market crash which was down for nearly more than a month has created as much speculation and aftermath as possible. One such is the drop in Ethereum’s gas fees. These lower Ethereum (ETH) transaction fees account to lower transactions and lower trades upon the market slump.
ETH Gas Fees Drop
Despite being the second-largest blockchain network after the Bitcoin (BTC), Ethereum (ETH) gas fees, which are nothing but transaction fees, have slumped down potentially. The recent market crash has affected the whole crypto industry adversely. However, being the most used prominent blockchain, Ethereum always used to have higher gas fees. This is in contradiction to its usage effectively.
Moreover, Ethereum is the most trusted blockchain for use, trade, and for transactions. Despite high popularity and a huge crowd over its blockchain, ETH always possessed higher gas fees.
However, this higher crowd has pushed the gas price of ETH high and on the rise efficiently. The gas fees for ETH at their peak during the mid of March accounted for $60. Now, at present, the prices have slumped down to as low as $4.42. This is the lowest ETH gas fees were for the past 6 months.
Other Reasons For the Drop
High gas fees have always been a struggle for Ethereum though. Yet, many prefer Ethereum blockchain due to its secureness.
However, another factor also contributed to this. The use of Ethereum layer 2 solutions such as the Polygon (MATIC) together has pushed the crowd away from the Ethereum blockchain.
All being decentralized blockchains, the use of Polygon (MATIC) has surpassed that of Ethereum, making it the choice for programmers, traders, and analysts.
In spite of all this, the rise in Ethereum also promoted the decentralised finance (DeFi) soar up.
Ethereum is now being traded at $2,210.67 which is actually less than half its price during May 11th accounting to about $4382.73.
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