Bitcoin and Ethereum fees fall to six-month lows

Due to the cooling of the market following the recent cryptocurrency downturn, transaction fees for Bitcoin and Ethereum have fallen to six-month lows.

according to Bitmap, The average price of transactions using Bitcoin has fallen from an all-time high of $62.77 in early April to about $7.20-a drop of 88% in just six weeks.

Bitcoin average transaction fees-BitInfoCharts

The decline in Bitcoin transaction fees seems to be driven by the reduction in overall market activity. According to the writing of this article, daily transaction volume has evaporated from more than US$67 billion on May 10 to US$30 billion at the time of writing. Coin gecko.

In the recent 2021, the cryptocurrency bull market has flown. In recent months, the average transaction fees associated with the use of Bitcoin or Ethereum’s main network have frequently soared to unprecedented levels.

In February 2021, Tesla announced on February 8 that the cost of Bitcoin had almost tripled in two weeks Added $1.5 billion worth of Bitcoin to the balance sheet.

This news triggered a surge in cryptocurrency speculation, and the price broke the previous high of $40,000 and then reached the highest price of $54,410. data CoinGecko’s data shows that BTC’s 24-hour trading volume has nearly doubled from February 7 ($57 billion the day before Tesla’s announcement) to $101 billion on February 23.

The average price of Bitcoin fees surged to a record high of $62.77 on April 21 after the BTC price surged to a local high of $64,804 on April 21. As traders scrambled to cash out near the high point, they began to show weakness.

Bitcoin price chart-CoinGecko

Data from chart It also showed that the average cost of Ethereum has dropped from a record high of $72.21 on May 20 to just $4.80, a 93% reduction in less than two weeks.

Ethereum average transaction fees-YCharts

The adoption of Ethereum-driven decentralized finance and non-fungible tokens is increasing, and the average fee has increased from $3.50 at the beginning of the year to a new high of nearly $40 at the end of February.

Although developers are trying to regulate the charging market by charging in April Berlin Hard Fork, A The speculative frenzy around Shiba Inu And other ERC-20 dog tokens have further exacerbated the congestion on the Ethereum mainnet and once again pushed the fees to a record high last month.

Ethereum’s transaction fees hit a record high of $71.21 for the last time on May 19, and according to Cointelegraph, traders flocked to it. Exit the leveraged position on the chain The collapse of cryptocurrency prices is the cause of the price increase.

CoinShares CSO Meltem Demirors reported that the cost of complex smart contract transactions is more than ten times the average cost at the peak of market turmoil. $ 1,000 One transaction.