Bitcoin and Ethereum trading fees have dropped to six-month lows as the market cools after the recent crypto crash.
According to Bitinfocharts, the average price for transacting using bitcoin has dropped from an all-time high of $62.77 in early April to nearly $7.20 – a drop of 88% in just six weeks.
The drop in bitcoin transaction fees appears to be due to a drop in overall market activity, with daily volume evaporating from more than $67 billion on May 10 to $30 billion as of this writing. Coingeco.
The meteoric 2021 crypto bull-run has seen average transaction fees associated with using the Bitcoin or Ethereum mainnet hit unprecedented levels in recent months.
In February 2021, bitcoin fees nearly tripled in the two weeks following the February 8 announcement that Tesla added $1.5 billion worth of bitcoin to its balance sheet.
The news intensified cryptocurrency speculation, breaking the price to $ 54,410, breaking its former high of $ 40,000. The data CoinGecko shows that 24-hour volume for BTC nearly doubled from $ 57 billion on February 7 – the day before Tesla’s announcement – to $ 101 billion on February 23.
The average price of bitcoin fees again rose to a record high of $62.77 on April 21st, when the price of BTC reached a local top of $64,804 on April 14th. Bitcoin fees peaked on April 21, as market activity increased. Weakness began to show, as traders raced to cash in on each other near higher levels.
data from Wycharts It also shows that the average Ethereum fee has dropped from a record high of $72.21 on May 20 to just $4.80, a 93% decrease in less than two weeks.
Ethereum-powered decentralized finance and the adoption of non-fungible tokens increased average fees from $3.50 at the beginning of the year to new highs of around $40 by the end of February.
While developers sought to discipline fee markets through April Berlin Hard Fork, a The betting frenzy around the Shiba Inu And other ERC-20 Doge tokens caused further congestion on the Ethereum mainnet, pushing fees again to record highs last month.
Ethereum’s transaction fees last set a new high of $71.21 on May 19, with Cointelegraph reporting that traders were rushing to Exit leveraged positions on the chain Crypto was responsible for the rise amid the fall in prices.
CoinShares CSO, Meltem Demirors, has claimed that complex smart contract transactions paid fees of more than 10 times the average at the peak of the market turmoil. $ 1,000 For a single transaction.