According to BitInfoCharts, the average transaction price on Ethereum is $2.15. Since December 20, 2020, when the average fee was $2.00, this is the lowest average fee.
Because Ethereum is in such short supply, fees are cheap. ETH is currently trading at roughly $1,800 and is steadily declining.
The average transaction cost for Bitcoin reduced by 24% overnight to $5.10. Bitcoin’s price has dropped to $32,700, less than half of its April all-time high. The transaction charge for Bitcoin has dropped by 330 percent since last year.
To be clear, while low transaction fees are terrible for miners and may signal low network demand, they are advantageous for anyone processing complex transactions using Ethereum-based decentralised finance protocols like Uniswap or Synthetix.
Following the release of Ethereum 2.0, fees may drop even further. It could take years for the Ethereum blockchain to be fully implemented, but it promises faster and cheaper transactions as well as much greener mining.
This is partly due to the network’s transition from the present consumptive proof-of-work consensus process, which necessitates sophisticated hardware to validate transactions, to proof-of-stake, which allows those with the most ETH to validate transactions.
A successful upgrade might pave the way for Ethereum to make a strong comeback. However, if demand increases, fees may climb once more.
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