In the past few weeks, Ethereum transaction fees shot up, with the NFT market going crazy. Relatively, the price of Ethereum also rose as most of the NFTs get housed on the blockchain.
In the last couple of days, however, the Non-Fungible tokens sales declined by over 21%. Initially, they were at a billion dollars, but they are at 217 million dollars today.
Similarly, the Ethereum blockchain has followed suit. By the end of August, Ether was at $3 200. From 3rd-7th September, the price hovered around that price before eventually dropping to lows of $3,186.
The Average Transaction Fee on Ethereum is Currently at 5.172.
This Transaction Fee measures the average price in US Dollars when miners process and confirm an Ethereum transaction.
These fees can spike during periods of network congestion, just like they did in the early 2018 crypto boom, where they got close to 3 USD. Most of these fees get burned by the network, with the latest burn involving 292 098.49 worth of ETH (close to a billion dollars).
These burns are a bullish step for Ethereum in the long term as they reduce the inflation rate by taking a lot of Ethereum away from supply.
Ethereum’s Average Transaction Fee is at a current level of 5.127, up from 2.288 yesterday and up from 3.357 one year ago. This is a change of 124.1% from yesterday and 52.70% from one year ago.
Since August 28, the transaction fees have declined to a level never seen before.
Bottomline
According to enthusiasts, these low prices are advantageous for investors because they get to buy more as the price of Ethereum will drop as well. For the Ethereum blockchain, it means that in the long term, there might be a bullish market.
NFT creators also remain hopeful, claiming the platform still has a lot in store. The drop to these enthusiasts is a short-term problem, but many are looking for long-term benefits.