Ethereum transaction fee reach one year low.

According to data collected by BitInfoCharts, the average ethereum transaction fee is now at its lowest in 2021.

Comparing the recent price which is about 176% increase with the price in January. 

The price of Ethereum on January 1 was $724 while currently the price is slightly above $2000.

The transaction fee is currently lower than what it was in January when the price was low. 

This shows that the price is not a sole factor that determines transaction fee. 

As at June 20, 2021, ethereum transaction fee was $3.50 whereas on May 12, 2021, it was $69.92.

According to the analytics firm, “We have to look as far back as June 2020, before ‘DeFi Summer’, to find similar levels of transaction fees paid,”

The increase in ethereum transaction fee can be traced back to June 2020 when DeFi lending PROTOCOL, Compound released its COMP governance token.

The release of the token marked the unofficial era of DeFi. 

After the launch of the protocol, many DeFi have come into existence of which most are built on ethereum blockchain. 

As DeFi are rendering their lending, borrowing and swapping functions, there is a need to approve coins and confirm transactions. 

This led to a significant increase in the demand for blockspace and miners shifted towards transactions with high transaction fees. 

Miners that have been enjoying almost 15,000 ETH per day are now left with 1,900 ETH per day. 

This is about an 85% drop. 

Aside from the factors that affect cryptocurrency transaction fees, the presence of close substitutes is a great disadvantage for ethereum. 

There are blockchain that can easily be bridged to the ethereum blockchain while maintaining a very low transaction fee. 

One of the blockchain is Binance Smart Chain which uses an ethereum wallet address but at a lower fee. 

This indicates that whatever you can do on ethereum can be done on Bsc at a low rate. 

Now is the best time to buy or swap ethereum and other ethereum based tokens. 

Your buying and swapping can be done with no stress at kurepay

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