Ethereum Gas prices drop! But, wait a minute .. - Kakiforex | Forex markets for the smart money. Ethereum Gas prices drop! But, wait a minute .. Ethereum Gas prices drop! But, wait a minute ..

March 6, 2021

Ethereum Gas prices drop! But, wait a minute ..

 Transaction costs on the Ethereum (gas) network have shown an increase since November 2020 and reached the highest level on February 23 where at that time the average value was 373 Gwei.


However, since February 23 the value of gas began to show a decline of up to over 65% with a record at the time of writing, 112 Gwei.


Where is the cause of the gas drop?


The daily trading volume on decentralized exchanges (DEXs) has declined 50% since its record high, $ 4.35 on 23 February.



Flipside Crypto data analyst Conner Higgins explained that although overall gas prices have declined but the situation is more regarded as a correction after the extraordinary surge.


At the same time, prices may remain high as a result of increased activity in the Non-Fungible Token (NFT) sector.


For now more and more NFT projects are being launched and holding auctions. Indirectly it will cause congestion on the Ethereum network, possibly until a scalable integration solution is implemented.


The average has already started shifting projects to Polygon and Binance Smart Chain (BSC) networks to avoid high costs.


For example, the successful Aavegotchi and SushiSwap projects with Polygon have proven the sustainability of the network. It is not impossible that other NFT and DeFi projects will also follow due to the better cost and transaction speed than Ethereum.