[Blockchain Today reporter Jang Seo-yeon] Bitcoin and Ethereum blockchain transaction fees have plummeted. Average transaction fees in recent months are down 93% to 95% from all-time highs.
The fee depends on the size of the transaction (bytes) and the number of transactions the coin has made in the past. This is because each time you move a coin, you need to confirm these transactions. Since the capacity of the blockchain is limited, the supply and demand of space are also factors that determine the transaction cost.
Bitcoin and Ethereum saw their transaction costs soar to all-time highs in April and May. This is a phenomenon that occurs when the price of the coin rises and the price reaches the highest price.
Bitcoin’s average transaction fee reached $62.77 on April 24. This was higher than $55 in December 2017, three years ago. But by the last 6 days, the fee has dropped to $4.38. That’s a 93% drop, and Bitcoin’s average fees have returned to levels not seen before the market surge in 2021 and since December 2020.
A similar pattern was also observed in Ethereum. On May 12, Ethereum’s average fee rose to $69.92. This is yet another all-time high for Ethereum fees, fueled in part by a surge in trading activity with decentralized finance and the launch of the Uniswap exchange, which has long been consuming the most resources on Ethereum.
Ethereum’s average fee was $3.44 per day. This is a figure that has not been seen since January 1, 2021, and is a decrease of 95%. Both blockchain fees have tended to rise whenever there is a sudden increase in the price of a coin or a new application that increases network usage.
Meanwhile, both Bitcoin and Ethereum are showing a decline in the number of transactions. From January to June, the number of Bitcoin transactions per day fell from 400,000 to 175,000. At the same time, the daily trading volume of Ethereum also decreased by 37.5% from 1.6 million to 1 million from May to June.
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