After the transaction fees of Ethereum (ETH) will reach a maximum of almost two years, fall 75%. Alleviating existing previous congestion for cryptocurrency.
In the midst of the pandemic, demand for cryptocurrencies has increased exponentially. Since the global quarantine has forced people to find new efficient ways to make money.
This has generated that cryptocurrency platforms not adapted to such demands and operations, reached their limits and maximums in record time. And this was the case with Ethereum.
However, good news has arrived, because the congestion on Ethereum is finally easing.
Ethereum transaction fees drop 75%
Giving a brief review of Ethereum basics, it is understood by “Gas”At the cost of carrying out an operation or a set of operations on the Ethereum network.
Thus, as in the physical world, in Ethereum there are also jobs that cost more than others: if the operation to be carried out requires a greater use of resources by the nodes that are the core of the platform, this will that the Gas also increases and vice versa.
And after many weeks where those trades were at full throttle, Ethereum gas rates appear to be finally coming down as activity levels tumble from July highs.
According EthGasStation, Wednesday’s average gas rate is between 30 and 40 Gwei, with a remarkable 6 Gwei minimum to get a confirmed transaction in less than 30 minutes.
This occurs after a period of more than two months of high rates. Taking a standard ETH transaction as an example, the average cost of sending it dropped from about $ 1 to less than $ 0.25. Thus being a clear relief for the users of the cryptocurrency, and of the platform.
Activity has decreased
This appears to be part of a trend that started several days ago with the gradual decline in the transaction count on the platform, according to data from Etherscan.
Total gas use and the number of ETH transfers have also declined slightly, although apparently less than the total transaction count.
It is worth noting that the Etherscan data does not yet include Wednesday in its reports. So it is difficult to determine what is driving the sudden reduction in gas rates.
And even though the Ethereum community raised the gas cap by 25% more in June. This was not enough to immediately relieve congestion, as demand was too high.
Finally, congestion improved and transactions fell by 75%, it is expected that Wednesday’s update can give a concise answer to the why of this event on Ethereum.
Will this situation with the Ethereum fee have any future impact?