Ethereum Transaction Fee Makes Fifty Day Low, DeFi Craze Subsides

The average transaction cost on Ethereum blockchain has tumbled to a fifty-day low, marking a culmination to a spell of super-high transaction prices that made the network excessively expensive to use.

Yesterday, the average transaction fee on Ethereum dropped to around 2.2 USD, as per data from BitInfoCharts. On 23rd August, it touched 2.28 USD (four cents higher). However, it hasn’t slipped below 2.248 USD since 9th August, when the average transaction cost was 1.94 USD.

Ten days ago, the average cost of a single transaction on ETH network reached 11.6 USD while it touched 14.6 USD on 2nd September. Notably, these are the highest average transaction fees the Ethereum network has ever witnessed. Previously, it was only in 2018 when the fees reached anything close to these levels.

It is to be noted that the fees upsurge when there is more demand to process transactions than there are miners to process them. It is an indicator of amplified activity. On the other hand, when network fees decline, it signifies a reduction in activity. 

Whatever the cause, these decreased fees come as a positive news for the traders who have been priced out of the budding decentralized finance ecosystem.