• Bitcoin
  • NFT
  • Binance
  • ETH
  • DeFi
  • Metaverse
  • IDO
  • Coinbase
  • Solana
  • ETF
  • FTX
  • GameFi
Newsletter
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
CoinLive
No Result
View All Result
Home Crypto News

Why did Ethereum transaction charges drop by 90%?

190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

[ad_1]

Ethereum

According to figures provided by The Block, the average transaction fee on the Ethereum network is now around $4.50 compared to nearly $45 a month ago – a 90% drop.

Related articles

Bitcoin is at $67K but analysis warns BTC price could drop 10% next

Bitcoin is at $67K but analysis warns BTC price could drop 10% next

May 20, 2024
Someone paid more than $3 million in fees for a single Bitcoin transaction

Someone paid far more than $three million in costs for a single Bitcoin transaction

November 23, 2023

Average transaction fees are currently at a six-month low, according to The Block. (The data is a 7-day moving average (7MDA), which means it is the average of the past seven days and indicates the short-term trend.)

So why have gas fees dropped from record highs just a month ago? There are several factors contributing to this remarkable decline as follows.

First, there has been a significant drop in Ethereum transactions in recent weeks. Both Decentralized Finance (DeFi) and NFT transactions fell due to the negative impact of price movements in May.

For example, the number of daily transactions on Ethereum has dropped to about 1.2 million from 1.65 million a month ago. The volume and number of NFT transactions have also plummeted.

Another factor contributing to lower gas fees is the increasing use of Polygon (formerly Matic Network) Layer 2 scaling solutions. The number of transactions on the Polygon network has increased significantly in recent weeks.

From about 1.5 million, the number of daily transactions on Polygon is now close to 7.5 million, according to PolygonScan. That is more than five times the number of daily Ethereum transactions.

Polygon is a Proof of Stake (PoS) blockchain compared to Ethereum, which is currently a Proof of Work (PoW) blockchain, although it is hatching plans to switch to a PoS model in the future. The transaction processing capacity of the PoW model is limited, so it will generally have a higher cost, although both models have their own pros and cons.

However, one thing is for sure: the need for scaling solutions is growing. Polygon remains one of such popular solutions. According to a report by The Block Research, there are more than 350 DeFi projects in the Polygon ecosystem alone.

Finally, the increasing use of flashbot transactions is another factor that has contributed to the reduction in gas fees. Flashbots allow traders to communicate with Ethereum miners off-chain, as in a private channel, to execute transactions. This reduces the number of spam transactions on the chain and thus reduces gas fees. In other words, reduce the number of bots trying to set the highest gas price to get priority trading.

Maybe you are interested:


Join our channel to update the most useful news and knowledge at:

According to Coinlive
Compiled by ToiYeuBitcoin

[ad_2]

Tags: dropEthereumfeestransaction
Share76Tweet48

Related Posts

Hyperliquid Surpasses $1.5 Trillion in Trading Volume

by shark
July 1, 2025
0

Hyperliquid hits $1.571 trillion in perpetual futures trading, highlighting its dominance in DeFi markets.

Metaplanet Acquires $108 Million in Bitcoin

by shark
June 30, 2025
0

Metaplanet Inc. strengthens its position as a leading Bitcoin holder with the acquisition of 1,005 BTC.

OKX Releases 32nd Proof of Reserves with Updated Holdings

by shark
June 30, 2025
0

OKX's latest Proof of Reserves report highlights changes in Bitcoin and Ethereum holdings, underlining a commitment to full reserve backing.

Canada Halts Digital Services Tax for US Trade Talks

by shark
June 30, 2025
0

Canada withdraws digital services tax to facilitate US trade talks, impacting major tech firms and market dynamics.

North Korean Cyberactors Drive $2.1B Crypto Hacks in H1 2025

by shark
June 30, 2025
0

North Korean cyberactors have led significant cryptocurrency hacks, totaling approximately $2.1 billion during the first half of 2025. This raises...

Load More

Tags

analysis announces Bank billion Binance Bitcoin Blockchain BTC CEO Coin Coinbase Crypto cryptocurrencies Cryptocurrency DeFi ETH Ethereum Exchange Finance FTX fund game General News Information Investment Latest Launch launches market Metaverse million Network News NFT platform Price project Protocol Review SEC Solana Token trading users wallet

Recent Posts

  • Hyperliquid Surpasses $1.5 Trillion in Trading Volume
  • Metaplanet Acquires $108 Million in Bitcoin
  • OKX Releases 32nd Proof of Reserves with Updated Holdings
  • Canada Halts Digital Services Tax for US Trade Talks
  • North Korean Cyberactors Drive $2.1B Crypto Hacks in H1 2025
  • Bitcoin Miners Retain Holdings Amid Revenue Slump
  • Michael Saylor Announces New Bitcoin Purchase
  • LeverFi Mints 13.7 Billion LEVER Tokens Amid Binance Delisting
  • About
  • FAQ
  • Contact Us
  • IGO
  • Altcoin
  • Terra
  • Launchpad
  • P2E
  • META
  • AXS
Email us: [email protected]

© 2021 CoinLive - Crypto News 24/7

No Result
View All Result
  • Home
  • Crypto News
  • Market Analysis
  • Learn

© 2021 CoinLive - Crypto News 24/7