Transaction fees for Bitcoin and Ethereum have fallen 81% and 71% respectively in the past few weeks as the broader cryptocurrency market continues to slide from its recent all-time high.
The usual price for using the Ethereum blockchain fell from USD 69.92 per transaction on Wednesday to USD 20.06 on Sunday, according to Bitinfocharts. Over the same period, the spot value of Ether (ETH) fell from an all-time high of $ 4,358 on Wednesday to $ 3,183 just before launch – a 27% decline.
Before the market surge in 2021, the current $ 20 shared fee for Ethereum would have been way too high. In 2020, the shared use price was less than $ 0.10. The rapid rise in the price for the use of Ethereum can be attributed to the emergence of decentralized finance apps, which now make up 4 of the 5 largest gasoline burners in the blockchain, as well as the increasing consideration paid to the blockchain in the course of market growth Year 2021.
The daily diversity of Ethereum customers has quadrupled since the beginning of 2020 and, in line with Bitinfocharts, has increased from around 400,000 to 1.6 million. This amount does not take into account transactions that take place on Ethereum’s Layer Two protocols.
The same pattern was observed with Bitcoin. Place transaction fees have fallen 81% since mid-April, when the BTC coin was valued at $ 65,000. The combined transaction price of around $ 62.77 was a brand new all-time high for BTC, surpassing the 2017 oversize of $ 55.
Bitcoin was priced at $ 42,440 early Monday morning, a 34% drop from its final surplus in April. Bitcoin dominance, which measures Bitcoin’s share of total cryptocurrency market capitalization, fell from over 70% in December to 39.9% on Monday.
While this amount typically means a rising altcoin market, it can also be misleading in completely different cases due to the distinction within the measurement of crypto market capitalization. For example, Bitcoin’s market dominance was almost 90% in 2017, but its world market capitalization was exclusively $ 2 billion, or 0.1% of the current market capitalization. At the same time, world market capitalization can easily be increased by anyone who takes the difficulty of getting a token with an excessive supply and even a modest starting value on the market.