The price involved of transferring a transaction on Ethereum plummeted today as congestion appears to be finally clearing.
In line with EthGasStation, the average gas fee on Wednesday was somewhere in-between 30 and 40 Gwei, with a notable 6 Gwei as the minimum to urge a transaction confirmed in less than half an hour .
This comes after a period of over two months of elevated fees, touching sometimes at 140 Gwei. Taking a typical Ethereum [ETH] transaction as an example, the typical cost of transferring it decreased from about $1 USD to around $0.25 USD. The development is even more noticeable for DeFi users, where some interactions would regularly consume up to $15 USD in fees.
Gradual Decrease In Transaction Count
This appears to be a part of a trend that began several days ago with the gradual decrease in transaction count, consistent with Etherscan data.
Total gas usage and therefore the number of token transfers have also decreased slightly, though seemingly lesser than the entire transaction count. This might suggest that a decrease in DeFi transactions accounts for the bulk of the relief, as transactions associated with Tether and Forsage, an alleged Ponzi scheme, are topping the charts.
It is worth noting that Etherscan data doesn’t yet include Wednesday, making it difficult to pinpoint what’s driving the sudden lowering of the gas fees.
The Ethereum community raised the gas limit, the Ethereum equivalent of block size, up by 25% earlier in the month of June. This wasn’t enough to right away ease the congestion as demand was too high.
As reported earlier, Ethereum [ETH] features a fairly elastic gas demand. When prices are high, lower value transactions in industries like blockchain gaming tend to decrease.
The congestion resulted in new users being unable to “dip their toes” in Ethereum DApps and DeFi, as some commentators added.