Ethereum (ETH) Transaction Costs Hit the Lowest in Two Years!

Ethereum (ETH) the cost of transacting on its network, by 2021 DeFi has decreased significantly since the dazzling days of summer and the ensuing immutable token spike.

Ethereum’s transaction costs have reached their lowest point ever in the last two years.

Ethereum Transaction Costs Have Dropped Huge Since Last November

Although transaction costs have reached low levels, the number of Ethereum transactions and daily active users has not decreased at the same rate.

The probable reason for this situation was that the traders did not want to pay high costs to process their transactions quickly.

Looking at the total number of transactions and active addresses on the ETH network, none of these statistics come close to all-time lows. In fact, both have increased by about 20% and 60%, respectively, over the same two-year timeframe.

Uniswap, OpenSea and ETH smart contracts were the most gas-consuming (cost of performing a transaction) transfers last month.

OpenSea realized the majority of the total gas consumption over the entire 14-month period. However, it has dropped significantly since January.

OpenSea consumed 230,000 ETH in the 14-month period and around 16,400 ETH on a monthly basis.

This caused other transactions on the network, such as transfers and token swaps, to cost astronomically more.

The reduction in transaction costs can be attributed to the significant reduction in OpenSea activity and the increasing number of users switching to alternative Blockchains in search of cheaper transactions.

On the other hand, although the Merge update has not yet made a significant change in transaction costs, it has had a positive effect and is expected to continue.

Although transaction costs have reached low levels, the number of transactions in optimistic roll-up solutions is on an upward trend.

*Not investment advice.