The expense of working with the Bitcoin and Ethereum blockchains is on the rapid decrease, as evidenced by a 93%–95% reduction in typical transaction fees within the past couple of months.
The size of this fee depends on the size of this transaction in bytes and how many transactions a coin has gone in the past (as these need to be checked every time a coin is moved). Supply and demand for distance also dictate the size of a transaction fee since blockchains have limited capacity.
The two Bitcoin and ETH watched their transaction prices spike to all-time drops in 2021 in April and May, respectively, coinciding with their rising coin valuations and cost peaks.
The exact same general pattern was seen on ETH, in which typical transaction fees rose as high as $69.92 on May 12. That was another all-time high for the cost of using ETH and was definitely fuelled in part by the flurry of activity that accompanied the launch of decentralized finance as well as the Uniswap market, which has long been the largest consumer of resources on ETH.
On Sunday, ETH’s typical fees were low as $3.44 — a figure not seen since the first day of January 2021 — amounting to a 95% reduction. Charges on both blockchains have a tendency to jump whenever there is a sudden rise to the coin’s cost or a new program that increases network use.
As mentioned earlier by CoinNewsDaily, the transaction count on both the Bitcoin and ETH can be on the decrease. Between January and June, the daily number of Bitcoin transactions dropped from approximately 400,000, to only 175,000. Likewise, the number of everyday ETH transactions dropped from 1.6 million to 1 million between May and June alone, marking a 37.5% fall.