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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.
This is a significant drop from averages of $59 on September 11 just four days earlier. That high of $59 was the highest average price for an Etheruem transaction since May 19, when costs also reached $59. On May 21, the highest recorded average fee of $69 was observed.
Fees have soared in recent weeks as the NFT market has exploded and ETH’s price has begun to rise. However, NonFungible.com reports that the seven-day average for NFT sales has been dropping since August 29, from little more than $1 billion to $217 million yesterday.
Significantly worse, daily sales are even lower. Following a massive trading spike on August 28, when $267 million worth of NFTs were sold (the majority of which were from the Bored Ape Yacht Club Mutant NFT dump), trading dropped to a meagre $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?