Ethereum gas fees drop to lowest level since August 2021

Transaction gas fees on the ethereum blockchain have dropped to their lowest levels since last August, but they’re still not cheap.

According to data provided by Coinmetrics and shared by CryptoRank Platform, the seven-day moving average cost of an Ethereum transaction totaled $11.14 as of March 9, returning to mid-year levels before the sharp surge to $55 in late 2021.

Transaction costs on the Ethereum network have never been lower since August 2021. Notably, gas prices spiked after staying in this range for about 3 months, which experts attribute to rising interest in the NFT and DeFi ecosystem.

— CryptoRank Platform (@CryptoRank_io) March 9, 2022

At the time of writing, network congestion appears to be light, with data from Etherscan estimating gas fees of around 30 Gwei ($1.53) for slow-confirming transactions and 32 Gwei ($1.64) for fast-confirming transactions.

Ycharts data also shows that the average gas price of Ethereum has been falling rapidly since the beginning of this year, from 218 Gwei on January 10 to 40.82 Gwei yesterday.

Amid Ethereum's non-fungible token (NFT) and decentralized finance (DeFi) boom in 2021, the network has repeatedly come under fire for its expensive gas fees.

Lower congestion and lower fees appear to correlate with less speculation or interest in NFTs and DeFi at the beginning of this year compared to the end of 2021.

According to data from DappRadar, in the past 30 days, 9 of the top 10 markets on Ethereum have experienced a decline in transaction volume, with the transaction volume of the first-ranked LooksRare and the second-ranked OpenSea falling by 78.27% respectively. and 34.75%. Other markets that suffered notable losses included SuperRare and Rarible, with volumes down 73.29% and 80.65%, respectively.

Ethereum-based DeFi is also suffering, with 8 of the top 10 projects in the past month in terms of total value locked (TVL) and native asset token price.

DeFi Project TVL Losses: DappRadar

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