Ethereum fees hit monthly low as transaction volumes plummet

Ethereum fees hit new highs due to the popularity of the decentralized finance (DeFi) space. As network activity grows, so does transaction volume. This effect persists even in bear markets, although swings between lows and highs are now more common in the space. Currently, transaction volumes have fallen sharply and ETH fees have now fallen to monthly lows.

Ethereum is trading at $0.5

Ethereum transaction fees have fallen to one of the lowest points this year. Natural gas costs, which have been fluctuating between highs and lows, appear to have found a place to rest at lower prices. In the early hours of Monday, the cost of gas on the ethereum network had fallen to the lowest point in June. At the time of writing this is only 19.8 Gwei per transaction, which translates to about $0.50 per transaction on the network.

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This represents a drop of more than 80% from last week’s peak in gas costs (151.3 Gwei per transaction). As Messari shows, this coincides with a drop in transaction volume on the network.

The data aggregation website shows that Ethereum’s transaction volume is down more than 80% from its monthly high. On June 13th, the transaction volume on the network has surpassed the actual transaction volume of 10 billion US dollars. Today, actual volume was $570 million, the lowest level this month.

ETH price declines to $1,179 | Source: ETHUSD on TradingView.com

Supply also takes a hit in June. As of the end of last month, the total supply of ETH in DeFi had exceeded 8.6%. However, as of this writing, the circulating supply in DeFi is less than 8.3%. It also means less than $10 billion worth, compared to $30 billion three weeks ago.

ETH Profitability Tank

There is some good news for investors as the price of Ethereum recovers. However, there is still a gap in profitability this year compared to last year. Going into the last month of 2021, more than 80% of ETH investors have been profiting. This is to be expected given that the digital asset hit an all-time high in November.

From this point, however, there is a significant pullback.data from into the block Shows that while the majority of ETH investors are still in profit, the margins are small. 52% of wallets are currently in the green state, while 47% are in the red. This leaves only 2% of investors in neutral territory, still volatile.

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When it comes to the growth of the network, there is more negative sentiment among investors. The main reason for this is all the competitors entering the DeFi and NFT space. Solana, especially in NFT games, pits Ethereum against its funds, sparking an exodus to networks that offer faster transactions and lower fees.

Still, Ethereum is the second-largest cryptocurrency by market capitalization. At the time of writing, the cryptocurrency is currently trading at $1,200 with a market cap of $149 billion.

Featured image from CryptoSlate, chart from TradingView.com

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