A drop in demand for Ethereum led to lower gas fees
A fall in demand for Ethereum and, as a result, a fall in gas fees is one of the few advantages of a down trending market.According to the charts, the average transaction price on the Ethereum network has plummeted to $3.70, the lowest level since the end of December 2020.
The drop in gas fees comes less than a month after average transaction fees hit an all-time high of $70. This happened on May 12, the same day Ethereum's price peaked at $4,300.
Gas prices are now at their lowest level since 2021, but still more than 500% higher than they were at this time last year. In June 2020, average transaction fees were around $0.60, according to the chart.
Users that are interacting with DeFi benefit from lower gas fees
Chart' numbers are just an average, and gas fees can vary widely depending on the type of transaction. A simple ERC-20 token transfer will cost far less than a complex smart contract interaction, especially during peak demand periods.Users who interact with the DeFi protocols to trade, farm yield or stake their tokens are benefitting from the cheap gas fees because it will cost them less to do these interactions. One group that benefits even more from lower gas fees is the NFT community, as they often had to pay high amounts of gas to mint a piece of art.
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