Ethereum network fees have fallen to their lowest levels this year as the crypto markets continue to consolidate.
One of the few advantages of a down-trending market is a decline in demand for Ethereum and the resultant drop in gas fees.
According to BitInfoCharts, the average transaction fee on the Ethereum network has fallen to $3.70 — its lowest level since the end of December 2020.
The gas slump comes less than a month after average fees for transactions hit an all-time high of $70. This occurred on May 12 which coincided with the ETH price peak of $4,300 on the same day.
Gas prices are now at the lowest level seen in 2021 but are still over 500% higher than they were this time last year. In June 2020, average transaction fees were around $0.60 according to the chart.
The move has not gone unnoticed by Ethereum users, with one tweeting about the single digit gas.
DeFi fees have fallen
The figures from BitInfoCharts are just an average and gas fees can vary wildly depending on the nature of the transaction. A simple ERC-20 token transfer will cost far less than a complex smart contract interaction—more so during times of high demand.
Etherscan’s Gas Tracker is currently reporting an average price of $2.35 for an ERC-20 transfer. The average price for a Uniswap token swap is around $7.23 with a high price for a quicker transaction at around $12.24.
Adding or removing liquidity from a DeFi yield farm will cost on average $6.33 and can be as much as $10.71 according to Etherscan.
In reality, these prices are still too high for the average user that’s likely to be dealing with much smaller amounts. As a result, many have switched to alternative platforms such as Binance Smart Chain, Polygon, and Flamingo Finance. Crypto whales on the other hand will likely not be bothered.
Ethereum price outlook
Ethereum prices may have had an impact on the price of gas as they are still consolidating. ETH has ranged between $2,550 and $2,850 this month and is still mostly echoing bitcoin in terms of price action.
At the time of press, ETH was trading slightly under $2,800. It’s recovering from a weekend low of $2,$2,557.
To break out of this range bound channel, Ethereum prices need to start closing above $2,900.