In 2021, the gas fees of Ethereum have never been as low as what it is now. The cost of average transactions is presently below one dollar, making it extremely cost-effective.
The current decline that the cryptocurrency market is experiencing has caused the cost of transactions of Ethereum to return to levels that are cost-effective once again. On Sunday, the average fee for a transaction that was needed was only five gwei, which is $0.15.
Ethereum Is Now Affordable Once More
On 12th May, the price of Ethereum reached a record high that stood at $4372, at the end of a price surge for the cryptocurrency. However, as the price was gradually reaching higher and higher levels, its gas fees also surged along with it.
In May, the gas fees reached the highest point which stood at 300 gwei. This came on the back of participants in the market enjoying a bullish momentum happening across three sectors: decentralized exchanges (DEX), non-fungible tokens (NFT), and decentralized finance (DeFi).
However, in the latest market correction, the price of the cryptocurrency dropped by over 50%. This led to a slowing down of the general market as well. The price decline also had a big negative impact on the market since popularity faded as well. However, the gas fees of ETH have been favored by the declining price action.
The latest yearly lowest of the transaction fees means that traders will have to spend only as much as $0.12 for any ETH blockchain transaction.
Another notable sign of the gas fees of ETH decreasing is possibly the declining DEX volumes. The volume of Uniswap over the weekend was only $884.5Mn which is much lower than its 19th May highest of $2.62Bn. Even in February, Binance reportedly spent nearly $10Mn in gas fees of ETH because of the overloading of the network.