Ethereum is not blocked? Gas fees have dropped by 65% ​​from the peak

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from

Babbitt Information (ID: bitcoin8btc)

, Author: JORDAN FINNESETH, Compiler: Apatheticco, published with permission.

The growing boom in decentralized finance (DeFi) has brought new attention and confidence to the cryptocurrency space, with the total value locked on DeFi protocols increasing from $1 billion to $59 billion in less than a year The top 5 platforms in the Ministry accounted for 24.33 billion US dollars.

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Ethereum average gas fee. Source: Etherscan

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DeFi transactions drop as market corrects

Looking at the daily transaction volume data of the decentralized exchange (DEX), we can find possible reasons for the drop in gas fees in the past two days.

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Daily DEX trading volume. Source: Dune Analytics

According to Flipside Crypto data scientist Connor Higgins, fees have dropped over the past few days, but we shouldn’t attribute this to one particular reason. Higgins said that when we compare the high gas fee on February 23rd to the overall over a longer time span, we can see that this value is actually an outlier.

Higgins said:

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Ethereum hourly gas fee data source: Flipside Crypto

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More and more NFT transactions are causing congestion on the Ethereum network

Users of the Ethereum network might expect gas fees to drop significantly as DeFi transactions decline, but this is not the case. One of the reasons for the high gas fee may be the surge of non-fungible token (NFT) on-chain activity.

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NFT project history chart. Source: NonFungible