While the NFT market is stumbling, Ethereum transaction fees are falling.

 77 Interactions,  4 Today

Ethereum has recently regained usability.

Ethereum is becoming less expensive to use: as the NFT bubble slows, transaction fees have fallen to levels not seen since August 28. According to Etherscan, the current average cost of an Ethereum transaction is $12.2.

Fees, which are paid for each transaction and primarily consumed by the network, rise with the time of day; according to BitInfoCharts, the average transaction charge was $29 for the entire day yesterday.

That’s a dramatic decline from averages $59 on September 11 just four days ago. That high of $59 was the highest average price for a transaction on Etheruem since May 19, when fees also hit $59. The highest ever average fee, $69, was observed set on May 21.

Fees heated up in the past few weeks as the NFT market went crazy and the price of ETH started to rise. However, the seven-day average for NFT sales has declined ever since August 29, according to NonFungible.com, from just over $1 billion to $217 million yesterday.

See also  If you are an ETH investor, you should be aware of the facts about Ethereum's rally.

And daily sales are even lower. After a huge trading spike on August 28, when $267 million worth of NFTs sold (most of them from the Bored Ape Yacht Club Mutant NFT drop), trading decreased to a paltry $7 million yesterday.

Ethereum’s price has followed a similar path. ETH rose from $3,200 at the end of August to just under $4,000 on September 3, a price it maintained until September 7, when it fell to lows of $3,186. The significant dip coincides with a drop in the S&P 500, indicating that investors are concerned that the US economy may not fully recover from the pandemic.

Despite a drop in sales, NFT developers remain optimistic, claiming that the space still has a lot of room to expand and that the best is yet to come. There is a lot of creativity in the NFT space. But, if traders are searching elsewhere, will NFT artists still discover that investors are clamouring for their new ideas?

See also  China becomes ‘low carbon' after an e-CNY experiment encourages usage for ‘intended uses.'


Subscribe to our newsletter


Leave a Reply

Your email address will not be published. Required fields are marked *