Liquidity mining continues to cool down, and Ethereum handling fees will drop to a 49-day low
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
The average cost of an Ethereum transaction has dropped to a 49-day low, marking the end of ultra-high transaction costs.
Source: BitInfoCharts
According to BitInfoCharts, the average transaction fee on Ethereum was $2.248 yesterday, the lowest since Aug. 9 ($1.94). On August 23, the average transaction fee was as low as $2.28.
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Source: BitInfoCharts
On September 2 this year, the average transaction fee of Ethereum hit an all-time high of $14.583.
One of the reasons for the high fees this summer could be the rise of DeFi, or decentralized finance, this summer. DeFi refers to a plethora of non-custodial financial products, including DeFi lending protocols, decentralized stablecoins, and synthetic assets.
September 2 showed the peak of the DeFi boom. Afterwards, network transaction fees began to decline. On September 17, Uniswap announced the issuance of the governance token UNI, and began to
"Scatter coins". Suddenly, a large number of users flocked to receive UNI, and the network fee rebounded sharply, reaching $11.612 on September 17. With the decline of the UNI effect, the network fee has fallen sharply this time.
Transaction fees increase when the demand to process transactions outstrips miners or blockchain space to process transactions. The rise in transaction fees is more of a benchmark for increased network activity. Fees have fallen, indicating less activity.
Over the past few months, a significant amount of money has been poured into these protocols. According to metrics site DeFi Pulse, nearly $11 billion is locked into DeFi smart contracts today; in June this year, the figure was just $1 billion.
