Tuesday, September 21, 2021
HomeNewsAiling NFT market causes transaction fees to fall

Ailing NFT market causes transaction fees to fall

Transaction fees decrease. (Graphic: Akarat Phasura / Shutterstock)

The use of Ethereum will be cheaper again. The average transaction fee dropped from $ 18.50 on Tuesday to $ 2.55 on Saturday.

The transaction fees in the Ethereum network are tending towards the lowest costs since the rally with a subsequent crash in May 2021 on Saturday , Mark 50 dollars.

It will probably not go any deeper

The average fees were last at a similarly low level on August 22, 2021 at $ 2.47. Over the months, however, it has been shown that it can hardly be any deeper. The historically lowest average fee of $ 0.00072, which was reached on October 21, 2015, is probably not expected again in the long term.

Observers see the rise and fall in the average transaction fee in connection with the NFT market, which has been heating up since mid-July, which, according to Nonfungible.com, reached its tentative peak on August 29, 2021 with a 7-day volume of over a billion dollars in NFT sales Had reached climax. Since then it has been going steeply downhill. Last Friday, with a view to the 7-day turnover, only a fifth of this turnover was achieved.

In the daily sales, the movements are even more pronounced. After a spike on August 28, when NFTs from the Bored Ape Yacht Club Mutant Drop were sold for $ 267 million, trading fell to just $ 7 million on Friday.

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Influencing factors: NFT market sinks, US economy not very optimistic

The main reason for the relationship between NFT sales and average fees is that an NFT requires a number of transactions. So it is not surprising that the NFT marketplace Opensea always leads the top 10 gas consumers. The network utilization caused by NFT then drives gas prices up.

The price of the ether also fell within a few days from around 4,000 to only around 3,200 (currently 3,400) dollars. A correlation to the downward slide of the S&P 500 is seen here. This has to do with fears that the US economy may not fully recover from the pandemic.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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