Transaction fees for Bitcoin and Ethereum have fallen 81% and 71% respectively in recent weeks as the broader cryptocurrency market continues to decline from all-time highs.
According to Bitinfocharts, the average cost of using Ethereum blockchain has dropped from $ 69.92 per transaction on May 12 to $ 20.06 by May 16. During the same period, the spot price of Ether (ETH) peaked and fell, falling from a time high of $ 4,358 on May 12 to $ 3,183 just before publication – a decrease of 27%.
Prior to the 2021 market boom, Ethereum’s current average commission of $ 20 was a full-time high by a certain margin. Until 2020, the average cost of use is less than $ 0.10. The rapid increase in the cost of using Ethereum comes after the emergence of decentralized economic applications, which now make up four of the five major gas burners on blockchain, and the growing interest in blockchain amid a market boom in 2021.
Ethereum’s daily users have quadrupled since the beginning of 2020, growing from 400,000 to 1.6 million, according to Bitinfocharts. This number does not include transactions made over Ethereum Layer 2 protocols.
A similar trend is seen with Bitcoin, with transaction fees falling 81% since mid-April, when the price of BTC was close to $ 65,000. Average transaction costs of around $ 62.77 reached a new full-time high for BTC, surpassing the 2017 high of $ 55, indicating Bitcoin’s top rally at the time.
Bitcoin was valued at $ 42,440 early Monday morning, down 34% from its most recent peak in April. Bitcoin Dominance, which measures Bitcoin’s share of the total market value of cryptocurrencies, fell to 39.9% on Monday, down from 70% in December.
Although this usually refers to an inflated cryptocurrency market, this figure can also be misleading due to the difference in the amount of market value of cryptocurrency at different times. For example, Bitcoin’s dominance in the market was close to 90% in 2017, but the global market value was only $ 2 billion, or 0.1% of what it is now. At the same time, the global market value can be easily increased by anyone who can work hard by running arbitrary code with a high price and even just a modest starting price.