Ethereum fees recently have witnessed a drop from the latest high fees along with a decline in the transaction volumes of DeFi. On the other hand, the spike of NFTs might drive the costs of the transaction to a new all-time high.
This emerging popularity of DeFi (decentralized finance) has acquired new optimism and attention to this cryptocurrency industry. In addition, the entire value sealed across all the protocols is increasing to $59 billion from $1 billion within less than 1 year. Also, the 5 leading platforms have an estimated total value of $24.33 billion.
Ethereum Reduced Gas Fees
The increasing high fees have been one of the most obvious outcomes of this growing interaction with the protocols of DeFi and at present, the network of Ethereum conducts many of the leading DeFi projects.
The gas fees have gradually been increasing from 2020 November as well as hit a peak on 23rd February after the average cost of transaction touched 373 Gwei that has nearly hit $11.72 during this present Ether price.
From the 23rd of February, the fees have dropped by almost 65% along with the average cost sliding to Gwei 131 on 3rd March and the data has revealed that during a particular time of a day they offer decreased fee under 700 Gwei.
One probable source for this decreasing gas fees has witnessed during the last few days is mainly seen through the regular DEX (decentralized exchange) volume.
According to the reports of Dune Analytics reveals that the trading volume for DEX has significantly dropped from the last high of $4.35 billion as of 23rd February and the daily growth metric based on the 24 charts of DEX had dropped 50% on 3rd March.