Ethereum: Gas Rates See Major Reduction

Ethereum Gas Rates

The price of Ethereum gas has fallen to its lowest level since August 2021, according to CoinDesk.

In response to a slowdown in DeFi and NFT activity, Ethereum gas costs fell to around 20-24 Gwei, depending on confirmation timing.

According to Cryptorank, gas fees for transactions on the Ethereum (ETH) network have plummeted to their lowest levels since August 2021, when the network first launched.

The figure has dropped significantly since the beginning of the year. Confirmation of a low-speed transaction takes an average of 6 minutes and 45 seconds, 2 minutes for medium-speed transactions and 45 seconds for high-speed ones, according to NIST. In just three months, the price of gas has dropped more than 90%.

Ethereum Gas

DeFi TVL is declining

A new all-time low has been reached in the company’s Total Value Locked (TVL). According to DeFi Llama, Ethereum’s share of DeFi TVL just fell below the 55 percent threshold. After multiple new highs in the fourth quarter of 2021, the statistics have dropped due to a decline in interest in the sector. TVL had a market cap of $109 billion at the time of writing, accounting for 54.5 percent of the DeFi market.

Ethereum has spawned a number of innovative protocols. Many alternative networks, such as Terra, Avalanche, Binance Smart Chain (BSC), and Fantom, have proven viable for customers by addressing apparent bottlenecks caused by high transaction fees and poor performance, as well as other factors.

After a successful year in 2021, the entire DeFi ecosystem has seen a commercial decline. Over the past 24 hours, most networks have marginally recovered.

Sales of NFTs decline

On the Ethereum blockchain, the hype around non-fungible tokens (NFTs) played a major role in driving up gas prices and causing network congestion, contributing to record-breaking gas prices. Despite a great start to the year, the pace of NFT growth has slowed. The median retail price of an NFT is now estimated to be less than $1,000, down from more than $6,800 just two months ago.

Additionally, one of the world’s largest NFT markets, OpenSea, has seen a slowdown. The value of daily transactions on the platform peaked at more than $360 million in early February and has continued to decline ever since.

As of March 9, the sum was $68.2 million. In less than three weeks, the number of daily NFT transactions dropped from over 120k to 109k.