Ethereum’s Median Transaction Fees Drop Lowest In Six Months

Ethereum’s median transaction fees drop to the lowest level in six months by 73% in a month or down to $14.17 from the $53.04 as we are reading furhter in today’s latest Ethereum news.

The infamous transaction fees in the ETH ecosystem underwent a decremental phase at the start of January to the record of the lowest average and median fees of $14.17 and $5.76 lowest since the December 2021 period. The data from Blockchair shows that the average transaction fees of ETH back in January was $53.03 which at the peak was $70.83 and in a month Ethereum’s median transaction fees saw a 73% drop as can be seen by the charts.

The resultant median transaction fees also saw an 81% drop from January $29.88 and in the last six months, Ethereum’s median transaction fee was at its lowest point in September $6.26. the transaction count on the Ethereum network came down to a number that was last seen back in 2019. The data from Blockchair shows that Ethereum’s transactions count went down to 14,574 from 36,851,128 which is a 60.44% drop in just one month and this is the first time in the history of Ethereum that the transaction count saw a drop in 30 days. In November 2021, Ethereum’s co-founder Vitalik Buterin proposed a new limit on the total transaction call data in the block to drop the overall transaction call data gas cost to the ETH network.

The miner earned 168 ETH for mining the block which vastly outstrips the per-block average reward of 4 ETH.

As recently reported, Over the past year, ETH increased in value and outperformed BTC in terms of returns with the rise of ETH making mining on the network more lucrative over time. This seems to have resulted in more miners and resulted in an expansion of the network hash rate. Ethereum’s hash rate records a new high and it will likely hit a new high in the near future. The new ATH was reached previously when the ETH price dropped from $4460 to $3160.

When the hash rate rises, it shows that more nodes are joining the network and that the network is becoming much more decentralized. Such an increase could help cement the blockchain security but if the hash rate is too low, it could be detrimental to the network because there will be a few nodes only and will result in transactions and less security.