After reaching a price high at $447 USD earlier on 17th August, the worth of Ethereum has been moving lower. As ETH was presently being traded for $396 USD, its miners were witnessing a pointy decline in their revenue as the Ethereum fees dropped by almost 80% from its all-time high on 22nd August. The DeFi hype had maintained higher gas prices on Ethereum [ETH] and therefore the drop has permitted the price to return to its normal trajectory.
Despite a robust drop, the present gas price was still far above historical levels. However, the recent plunge helped the gas price to return to its linear trajectory. This drop aided in making Ethereum projects less costly & offered the users with a chance for cheaper on-chain operations.
In line with recent official report published by Glassnode’s, the recent pump within the gas price still threatened to limit Ethereum usage to higher net worth individuals, who stand to form profits that outstrip the gas cost of their trades. Reports suggested over 17,500 [USD $6.8 Mln] were being spent on fees daily on Ethereum and was mainly driven by DeFi and Stablecoins. The rising interest in DeFi and therefore the use of Tether on Ethereum were the most contributors to the surge in gas price along side congestion on the network.
Recently, Tether [USDT] revealed to integrate into the OMG Network so as to wase congestion on the Ethereum network. However, this is able to only offer temporary relief, as DeFi applications are still raking-in large interest and now have about $6.9 Bln worth of digital assets in terms usefulness, which was just $3.9 Bln earlier on 31st August. Thus, if the fees were to ascertain lower levels, the DeFi hype has to subside quite bit until scaling on the Ethereum network can be improved substantially.