The recent market crash and the subsequent fall in market activities have resulted in the sudden fall of transaction fees of BTC and ETH. According to Bitinfocharts, the transaction fees of BTC reached an all-time-high of $62.77 within the last six months in April 2021. Ever since that time, the average gas fees have been very high.
The second placed Ethereum, had its all-time-high transaction fee of $72.21 within the last six months in May 2021. However, in a significant turn of events, the average gas fee of ETH is around $7.20. According to Cryptofees’ gas fee structure, the minimum transaction fee of ETH is around $1.63, while the maximum is $6.82. The average gas fee is about $4.20.
The minimum transaction fee for BTC is $ 0.7512, while the highest is $ 27.6466, with the average figure at around $7.20. Therefore, the average price of BTC has fallen by around 88%, while that of ETH declined by almost 93%.
Normally the transaction fee, which is a payment given to miners for using their computing power to verify transactions, fluctuates in response to the demand and supply of the specific cryptocurrency. As a result, the transaction fee increased remarkably during the bull run period that extended from the last quarter of 2020 to May 2021.
This slump in transaction fees, therefore, is a response to the decrease in the demand of ETH and BTC, and the general downtrend of most cryptocurrencies. The major cause of the surge in the gas fee of ETH, since January 2021 is the increase in demand for NFTs, which are built on the ethereum blockchain.
In a related development, BTC shows signs of breaking out, which could result in an all-important test of $42 000, soon. However, Newscrypto, a leading trading educational platform, predicts that BTC will not have a clean break, but it is most likely to have some consolidation below the $40 000 resistance level.
Basically, there has been a fall in swings of the BTC price as shown by the decrease in the 10-day volatility from 162% on May 24 to 106% on 2 June, 2021. According to CoinMarketCap, the current price of BTC is around $39 450 while ETH stands at around $2 884. Interestingly, BTC remains the top ranked cryptocurrency, followed by ETH. Binance coin, Tether USDT and Cardano occupy third, fourth and fifth positions respectively.
