14.5 C
Manchester
June 28, 2022
Image default
Altcoin

gas reduced by more than 50% in one month

At the end of November, the gas in Ethereum transactions dropped. See the costs comparing Bitcoin and Ethereum

Taking as a reference, the average cost per transaction expressed in dollars as of December 1st was above $50, although it had also dropped below $40, but only temporarily in the previous days.

However, from December 2, it began to fall more broadly and lastingly.

Already on December 12, it dropped below $23, while on December 26, it also dropped below $20.

Therefore, from December 1st to December 26th, it has more than halved.

Considering the average of the average cost of each transaction, on December 1st it was above $26, while on December 19th it was below $9. Now it costs around $15.

Note that the current levels are similar to those of October 23, despite a different ETH price.

In fact, on October 23, the ETH price was above $4,000 while it is now below $3,900. On the other hand, on December 1st, it was even above $4,700, which suggests that it was the price that led ETH and ERC-20 token holders to make more transactions than usual, causing the gas to grow. .

What is really surprising, though, is the fact that a year ago, the average cost per transaction was less than $5, while the average was just over $2.

Bitcoin and Ethereum, costs in comparison

Comparing these dynamics with, for example, those of Bitcoin, we find that the average cost per transaction in BTC has dropped over the course of 2021, dropping from $8 to $2, with the average dropping from $4 to $1 or less.

In other words, if 12 months ago the cost of transactions on the Ethereum blockchain was comparable to that of transactions on Bitcoin, now it is ten times higher, although last month it decreased.

In addition to the higher transaction volume caused by a higher value of tokens, two other factors are impacting.

The first is that more and more BTC transactions are not transited on the blockchain, but are executed on the second layer of the Lightning Network, while Ethereum transactions on the second layer struggle to take off.

The second is the fee burn introduced since August, and this has likely caused the cost of fees to double.

Instead, the real DeFi boom did not increase the overall daily volume of transactions recorded on the Ethereum blockchain, as the current one is perfectly in line with that of 12 months ago.

Source: cryptonomist

Related posts

Overtaking XRP, Dogecoin is now the fourth largest cryptocurrency by market capitalization

Anupreet Kaur

How much can you earn “stakando” Ethereum 2.0?

Anupreet Kaur

What problems can the crypto world expect in 2021?

Anupreet Kaur

Leave a Comment