Bitcoin

Ethereum’s transaction costs decrease 75% as congestion decreases

The cost of submitting a transaction to Ethereum has been drastically reduced today, because apparently the overload would finally disappear.

In accordance with EthGasStationthe average gas price on Wednesday is between 30 and 40 Gwei, with a remarkable 6 Gwei at least, to get a confirmed transaction in less than 30 minutes.

That comes afterwards a period of more than two months with high ratesand sometimes reached more than 140 Gwei. Using the example of a standard ether transaction (ETH) Average shipping costs dropped from around $ 1 to less than $ 0.25. The improvement is particularly noticeable among DeFi users, where some interactions regularly used fees of up to $ 15.

The activity decreases

Ethereum’s transaction costs decrease 75% as congestion decreases
Ethereum’s transaction costs decrease 75% as congestion decreases

This appears to be part of A trend that started a few days ago with the gradual decrease in the number of transactionsaccording to data from Ether scan.

Daily transaction chart from Ethereum

Source: Etherscan.io

Total gas consumption and the number of token transfers also decreased slightly, although apparently less than total transactions. This could indicate this DeFi’s reduced transaction accounts for most of the relief, since the transactions related rope and Forsage, an alleged Ponzi program, tops the charts.

It should be noted that the Etherscan data Wednesday numbers still not includedThis makes it difficult to determine exactly what is driving the sudden drop in gas rates.

The Ethereum community raised the tank cap by 25% in June. This was not enough to reduce the congestion immediately as the demand was too high.

As Cointelegraph previously reported, Ethereum has a fairly elastic gas requirement. When prices are high, lower-value transactions tend to decline in industries like blockchain video games.

Due to the overload, new users could not “dip their toes” in Ethereum and DeFi DApps, as some commentators noted.

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