Home News Bitcoin and Ethereum fees slump to six-month low

Bitcoin and Ethereum fees slump to six-month low

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Average fees in Bitcoin and Ethereum networks continue to decline and have already reached January 2021 levels.

Bitcoin fees

The average transaction fee on the Bitcoin network has dropped to $ 7. According to the BitInfoCharts service, this is the lowest figure in the last five months.

Commissions rise when the demand for processing transactions increases on the network. Accordingly, if the demand for transactions falls, then the fees are also reduced. This is exactly the trend we have seen since mid-May. When the number of users willing to send funds decreases against the background of the fall in the value of BTC.

In mid-April, when the digital coin renewed its all-time high at around $ 64.3 thousand, record commissions of $ 62 were recorded in its network. After that, Bitcoin quotes went down. And on May 19 there was a collapse. For the first time since January, the coin fell to $ 30 thousand. By the end of May, Bitcoin fell by 35%, and as of June 1, it is traded at $ 36.1 thousand. Against this background, the average transaction in the network of the main cryptocurrency has also decreased.

That is, the decline in its rate directly affected the cost of Bitcoin transactions. It now costs 43% less to process a transaction in dollars than at the highs in mid-April, at the same cost in Bitcoin. With the fall in the cryptocurrency rate, the activity of traders also decreased. According to CoinGecko, Bitcoin trading volume in the last 24 hours was about $ 30 billion, after declining all last week.

Decrease in the hashrate of the Bitcoin

The impact of the recent mining difficulty adjustment is also felt. On Sunday, it fell by 16% – this is a record for the last year.

In May, a 27% decrease in the hash rate of the Bitcoin network was recorded. On May 13, the hashrate of the main cryptocurrency network was 171 EH / s, but by May 30, this figure had dropped to 124 EH / s.

The decline in the activity of market participants could also have affected, as indicated by the consolidation of the Bitcoin price in a narrowing range.

Average transaction fees on the Ethereum network

Ethereum has a corresponding figure of $ 4.72, although less than two weeks ago it reached $ 100. The growth in Ethereum fees is associated primarily with the activity in the space of decentralized finance, as well as with the increased attention of traders to Shiba Inu (SHIB) and similar tokens. In May, Ethereum creator Vitalik Buterin crashed the SHIB market, thereby cooling the speculative fever.

Thanks to the reduction in fees, Ethereum users finally have the opportunity to conduct transactions that they could postpone for a long time due to the prohibitive cost. So, according to GasNow estimates, the exchange of an asset on the Uniswap v2 exchange with the fastest execution speed will now cost $ 5.60. More recently, traders paid $ 200-300 for the same operations.

Uniswap remains the largest consumer of gas in the cryptocurrency world with a daily consumption of $ 2.8 million for the second and third versions. This, however, is already significantly less than the $ 5.8 million average over the past seven days.

Weakening the correlation between Bitcoin and gold prices

The researchers drew attention to the weakening of the correlation between the prices of bitcoin and gold.

According to the Unfolded team, the interdependence of precious metals and cryptocurrencies is now at its lowest since 2018. Although last year, the correlation index of the two assets, on the contrary, increased.

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