Categories: Crypto NewsNews

Ethereum fees fall to monthly lows, as transaction volumes plummet

Published by
Nonhlanhla P Dube

Due to the general popularity of the decentralized finance (DeFi) space, Ethereum fees had reached new highs. As network activity increased, so did transaction volume. The impacts have lingered long into the bear market, however oscillations between low and high are now more prevalent. Currently, transaction volumes have dropped dramatically, and ETH costs have dropped to monthly lows.

Transactions in Ethereum at R7,92

Ethereum transaction fees have dropped to one of the year’s lowest levels. Gas prices, which have been oscillating between high and low, appear to have settled at lower levels. The Ethereum network’s gas costs dropped to their lowest point in June in the early hours of Monday. At the time of writing, it was only 19.8 Gwei per transaction, which equated to around R7,92 per transaction on the network.

This represents a more than 80% decrease from the peak of gas expenses last week of 151.3 Gwei per transaction. This corresponds to a decrease in network transaction volume, as shown by Messari.

According to the data aggregation website, Ethereum’s transaction volume is down more than 80% from its monthly peak. On June 13, the network’s transaction volume had surpassed R160.5 billion in real volume. Today, the real volume was R9 billion, the lowest level for the month.

In the month of June, supply was also reduced. DeFi accounted for more than 8.6 % ETH supply as of the end of last month. However, at the time of writing, DeFi accounted for less than 8.3 % of the circulating supply. This amounts to a dollar value of less than R160.6 billion, down from R481.6 billion three weeks ago.

ETH Profitability Is Declining

The price rise of Ethereum has brought some good news to investors. However, there is still a difference in profitability levels between last year and this year. By the end of the year 2021, more than 80% of ETH investors had made a profit. This was predicted given that the digital asset had reached a new all-time high in November.

However, there is a huge drawback here. According to IntoTheBlock data, while the majority of ETH investors are still profitable, it is by a narrow margin. Currently, 52% of wallets are in the black, while 47% are in the red. Only 52% of all investors are in a neutral area, which is still precarious.

When it comes to network expansion, investors are more sceptical. The main reason for this is the influx of competitors into the DeFi and NFT markets. Solana, in particular, has been giving Ethereum a run for its money in the NFT game, sparking migration to the network that offers faster transactions and reduced fees.

Nonetheless, Ethereum is the second-largest cryptocurrency by market capitalization. The cryptocurrency has a market valuation of R2.3 trillion and is currently trading at R19 267 at the time of writing.

Share
Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Ethereum.
%%footer%%