Ethereum’s Gas Fees Reach 8-Month Low As NFT Activity Cools Down

Ethereum’s gas fees reach 8-month low as the interest in DEFI and NFT is cooling down, reaching levels now seen since August 2021 as we can see in our Ethereum latest news.

With the NFT and DEFI activity starting to cool down, Ethereum’s gas fees reach a new low and are hovering around 20-24 Gwei depending upon the time required for confirmation. As per the crypto market data aggregation site Cryptorank, the gas fees for Ethereum transactions on the network dropped to the lowest point since August 2021. The Figure was declining since the start of the year and the latest stats show that the low-speed confirmation of 6 mins and 45 seconds will require 20 Gwei which is a medium speed confirmation of around 2 mins that will require 22 Gwei and a high-speed confirmation of 45 secs will require 24 gwei. The fas fees were shredded about 90% in the past three months.

The total value locked in Ethereum’s DEFI hit an all-time low and according to the data from DEFI LLama, Ethereum’s share of DeFI TVL dropped below 55% but after hitting multiple new highs, the figures come down owing to the waning interest in the sector and as of the time of writing, the TVL figures stood at $109 billion and accounted for 54.5% in DEFI market value. The protocols were branching out of Ethereum and even though it continued to be the marekt leader, other networks like Fantom, binance smart Chain, Avalanche, and Terra proved viable to the users by eliminating the bottlenecks caused by the high transactions fees and the low throughput.

After a remarkable 2021, the DEFI ecosystem witnessed a prolonged period of a market slump and most of the networks entered the deep red despite recovering from the past 24-hours. The hype around the NFT space was one of the main drivers in the high gas fees on the ETH blockchain and the network congestion. As the year started with a bang for NFTs, the momentum cooled off and according to market tracker NonFungible, the sale price of an FNT is around $1K as opposed to $6800 two months ago.

The activity in one of the world’s biggest NFT marketplaces Opensea also cooled down and the daily transactions on the platform hit an ATH of $360 million during the first week of February. The figures stood at $68.2 million with daily NFT transactions taking a hit from the high above $120K to $109K in less than three weeks.