Ethereum gas fees have gone down recently, and it is less than Polygon now. Yes, there has been fluctuation, but all in all, there have been times where it was less than 10 gwei which is roughly 50 cents. This is significantly less than what users were paying for transactions last May. At the time, the fees went as high as $70 or around 659 gwei. So, it is a positive thing for the adoption of Ethereum.
Transaction numbers have kept up
A lot of you might be thinking that the latest drop in gas fees is correlated to the price and reduced demand of normal transactions. But that is not the case as the demand has kept up surprisingly well. It is around 1 million transactions per day with some ups and downs. Yes, but lower demand for NFTs and less trading could be a reason for this reduction in gas fees. Arcane Research cited the same, and it makes sense as NFT transactions are a significant portion of Ethereum, but with low NFT demand, the demand for ETH has suffered as well.
This can be understood by the data presented by Cryptoslate. It was reported that from Feb 1 to Feb 6, the OpenSea volume dropped from $247 million to $124 million, and the gas fees dropped from 134 gwei to 65 gwei.
For Polygon, the fees seem to be a bit higher as it has been adding 30 gwei to every transaction to reduce spam, and this makes ETH cheaper to use. In fact, the demand for L2 solutions is on the rise, and many Ethereum transactions are happening on these solutions. So, until the demand for Ethereum rises which can happen by the increasing trading volume of NFTs, we might not see ETH gas fees go up.
About Polygon
Polygon is a “layer two” or “sidechain” scaling solution that works with the Ethereum blockchain to enable fast transactions and minimal costs. MATIC is the network’s native coin and is utilized for things like fees and staking. It may be purchased or sold on exchanges like Coinbase.
What are your thoughts as Ethereum gas fees have fallen for hundreds of dollars to 50 cents? And do you think that the reason for this is the falling demand for NFTs? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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