- The last time Ethereum’s gas fees were as low as this was August last year.
- The reduction tend to be linked with the diminishing interest in NFTs and DeFi at the start of this year vs the end of 2021.
The second-largest cryptocurrency, Ethereum, has always been known for its outrageous gas fees. According to CryptoRank, the fees are as low as 30 gwei (1.53USD) right now. Towards the end of last year, the fees went as high as $60. The diminishing rage of NFTs and the introduction of decentralized finance apps to certain other networks, including Avalanche and Terra, is linked to the decrease in Ethereum gas fees.
According to statistics by DappRadar, most of the top Ethereum-based marketplaces have had lower trading volumes in the past 30 days. LooksRare has gone down 75% and OpenSea 39%. SuperRare and Rarible also suffered significant losses, falling by 73.29 percent and 80.65 percent, respectively.
Ethereum Defi is also sinking, with eight of the top ten applications losing money in total value locked (TVL) over the last 30 days.
NFTs Diminishing Popularity Linked to Decrease in Ethereum Gas Fees
At the start of the year, there was a notable increase in the popularity of non-fungible tokens, thanks in part to celebrities like Snoop Dogg, Eminem, and Liam Payne showing public enthusiasm.
At the beginning of February, it was the most searched crypto-related term on Google, but ever since then, the focus on non-fungible tokens appears to be slowly decreasing, with the overall volume of transactions per day on the largest NFT marketplace, OpenSea, dipping to $290 million from nearly $360 million at the beginning of last month.
Over the same time period, the amount of new NFT buyers on OpenSea has fallen from around 50,000 to below 30,000.
It is believed that this diminishing interest in NFTs coupled with Ethereum Defi in the red has contributed to the decrease in gas fees.