Ethereum

<a href="https://en.coin-turk.com/what-does-53400-eth-transferred-to-coinbase-mean/" target="_blank" rel="noopener" data-wpel-link="internal">Ethereum (ETH)</a>, the world&#8217;s second-largest cryptocurrency by market value and the biggest altcoin, ended May in a rather calm fashion. As of writing, ETH is trading around $1,850, and significant changes are seen in the network&#8217;s average transaction fee, which has plummeted by up to 70%. 
<h2 style="text-align: justify;" id="the-average-transaction-fee-on-the-network-fell-by-69-in-one-month">The Average Transaction Fee on the Network Fell by 69% in One Month</h2>
According to on-chain data provider Santiment, Ethereum&#8217;s average transaction fee has fallen by 69% in just a month. Interestingly, at the beginning of last May, Ethereum&#8217;s average transaction fee hit a yearly high of $14. However, it fell below $5 by the end of the month. 
In its assessment of the dramatic change in Ethereum&#8216;s transaction fee, Santiment stated, &#8220;Ethereum&#8217;s average transaction fee plummeted rapidly after reaching a 2023 high of $14 per transaction at the beginning of May. Greater affordability encourages more utility. Also, the self-custody situation among investors has pushed the ETH supply on cryptocurrency exchanges to an all-time low of 9.9%.&#8221; 
<img decoding="async" loading="lazy" class="aligncenter wp-image-81498 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/eth-1.png" alt="" width="1372" height="868" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/eth-1.png 1372w, https://en.coin-turk.com/wp-content/uploads/2023/06/eth-1-269x170.png 269w, https://en.coin-turk.com/wp-content/uploads/2023/06/eth-1-768x486.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/eth-1-1200x759.png 1200w" sizes="(max-width: 1372px) 100vw, 1372px" />
<h2 style="text-align: justify;" id="ethereum-transaction-fees-by-transaction-type">Ethereum Transaction Fees by Transaction Type</h2>
As the Ethereum Blockchain has long hosted various asset classes, each has significantly contributed to the increase in transaction fees at different points over time. 
On-chain data platform Glassnode detailed how different asset classes contributed to the increase in transaction fees on the largest altcoin network at different times. Accordingly, ICOs in 2017-2018 contributed 40% to the increase in Ethereum&#8217;s average transaction fees, taking the top spot. It was attributed to all ERC-20 token transfers at that time. However, as the demand for ERC-20 tokens decreased over the following years, Decentralized Finance (DeFi) began to emerge in 2020. The DeFi wave reached its peak from June 2020 to 2021, causing a 30% increase in transaction fees. 
Underlining the consistent performance decline in DeFi tokens over the past two years, Glassnode stated, &#8220;Investments in DeFi were complex, and there has been a quite low token price performance in recent years.&#8221; 
Starting from mid-2021, NFTs gained significant importance, but demand sharply fell by the end of 2022. Similarly, USD-pegged stablecoins have seen significant user demand since 2020. However, according to Glassnode, the decline in the transaction fee increase resulting from stablecoin transactions reflects a change in usage rather than a drop in demand. Stablecoins are now being used more as a hedge against risk and a store of value rather than a payment method. 
The post <a rel="nofollow" href="https://en.coin-turk.com/ethereum-sees-significant-decline-in-average-transaction-fee-major-influencers-unveiled/" data-wpel-link="internal">Ethereum Sees Significant Decline in Average Transaction Fee: Major Influencers Unveiled</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Ethereum Sees Significant Decline in Average Transaction Fee: Major Influencers Unveiled

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