Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Ethereum Forum => Ethereum News & Updates => Topic started by: Fawpac2 on June 22, 2021, 11:58:22 PM
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Perhaps Yogi Berra was thinking ahead to Ethereum when he said, "Nobody goes there anymore—it’s too crowded."
The blockchain, which has garnered competition from networks taking aim at its high rates of congestion and transaction fees in the double digits, has swung the other direction.Miner revenue from transaction fees has dropped over 85% from 15,000 ETH per day a little over a month ago, according to a new report from Glassnode. The seven-day average now sits at 1,900 ETH. "We have to look as far back as June 2020, before 'DeFi Summer', to find similar levels of transaction fees paid," wrote the analytics firm.
That was the same month DeFi lending protocol Compound released its COMP governance token, unofficially kicking off "DeFi Summer" and spurring demand for products that allowed people to lend, borrow, or swap assets with each other instead of going through a bank or other financial intermediary. Many DeFi protocols use Ethereum's infrastructure, increasing the popularity of the network while also driving up congestion.Transaction fees rise along with demand for the network. The more demand there is to push through transactions, whether they be bids on an NFT or loans on Compound, the less available space there is for additional transactions to be included in a block. As a result, transaction fees go up. When there's more available space, fees go down.source (https://cryptonews.net/847659/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)