Ethereum

April

<p style="text-align: justify">Data analysis firm IntoTheBlock reports that the <a href="https://en.coin-turk.com/altcoin-king-may-be-on-the-verge-of-significant-growth/" data-wpel-link="internal">Ethereum</a> network has entered a new era of low transaction fees and is once again testing a deflationary narrative for Ether (ETH).</p> 
<h2 style="text-align: justify" id="ethereum-transaction-fees-reach-bottom">Ethereum Transaction Fees Reach Bottom</h2> 
<p style="text-align: justify">According to IntoTheBlock’s data, Ethereum Blockchain transaction fees have reached their lowest level since April 2020, dropping by approximately 90% from their peak in May of this year.</p> 
<p><img decoding="async" class="aligncenter size-full wp-image-266367" src="https://coin-turk.com/wp-content/uploads/2023/10/Ethereum-Islem-Ucretleri.jpeg" alt="" width="1056" height="554"></p> 
<p style="text-align: justify">In previous years, users of the Ethereum network frequently faced high transaction fees (also known as gas fees) due to the influence of bull markets. This congestion was caused by high activity in areas such as <a href="https://en.coin-turk.com/weekly-sales-exceed-106-million-critical-metrics-on-the-rise-is-the-nft-craze-reviving/" data-wpel-link="internal">NFT</a> trading and decentralized finance (<a href="https://en.coin-turk.com/over-1-billion-in-liquidations-investors-suffer-heavy-losses-in-crypto-market/" data-wpel-link="internal">DeFi</a>) yield farming. However, the subsequent price decline in cryptocurrencies, reduced demand for NFTs, and a decrease in DeFi activity have resolved these issues.</p> 
<h2 style="text-align: justify" id="layer-2-solutions-behind-the-decrease-in-transaction-fees">Layer 2 Solutions Behind the Decrease in Transaction Fees</h2> 
<p style="text-align: justify">The report also highlights the contribution of Layer 2 solutions, developed to scale and increase the capacity of Ethereum, in reducing transaction fees. This development allows Ethereum users to perform transactions at lower costs. However, this has caused an increase in the supply of ETH by keeping its inflationary effect intact.</p> 
<p style="text-align: justify">Lucas Outumuro, research director at IntoTheBlock, stated that the decrease in transaction fees is testing the “ultra sound money” thesis of ETH. According to the data, ETH supply has increased by approximately 33,500 ETH worth $52 million in the last 30 days due to low network activity.</p> 
<p style="text-align: justify">Outumuro noted that with the decrease in speculative activity and users continuing to migrate to Layer 2 solutions, transaction fees on the network are likely to remain at low levels. The report highlights that while NFT trading represented a significant portion of ETH supply in 2021 and early 2022, it only accounted for 8% in recent weeks. The report also states that the period of low transaction fees marks a significant transition for Ethereum, changing the narrative of high network revenue and deflationary supply through Layer 2 solutions, which promises to attract more users.</p> Continue Reading: <a href="https://en.coin-turk.com/ethereum-transaction-fees-hit-record-lows-as-defi-activity-slows/" data-wpel-link="internal">https://en.coin-turk.com/ethereum-transaction-fees-hit-record-lows-as-defi-activity-slows/</a>

Ethereum Transaction Fees Hit Record Lows as DeFi Activity Slows

Table of Contents

COINTURK NEWS

Other articles published on Oct 13, 2023

G20 Adopts a Regulatory Roadmap for Cryptocurrencies!

Balancer Price Prediction: Downfall in BAL Crypto is Near to End?

How to Identify Crypto Projects That Will ‘Make a Comeback’ in the Upcoming Bull Run

China FX regulator supports CBDC amid monetary policy

Former Engineer Exposes Multi-Million Dollar Scams at Alameda Research Amidst FTX Fraud Trial

FLOKI (FLOKI) Price Prediction 2024, 2025, 2030, 2040, and 2050

Join our free newsletter for daily crypto updates!