According to the recent reports, the transaction fees for Bitcoin (BTC) and Ethereum (ETH) are currently experiencing a lower price. According to the on-chain data analyzing firms, the transaction fee slump being experienced is an all-time low in the last six months.
The slump for transaction fees has been experienced after the price drop run for cryptocurrencies has finally come to an end. As the price drop for cryptocurrencies continues to cool down, the transaction fees for Bitcoin (BTC) and Ethereum (ETH) are experiencing a drop as well.
An on-chain data analyzing firm known as BitInfoCharts has shared stats in regards to the fall in the price of transaction fees for both assets. The firm has revealed that in early April, the transaction fee for Bitcoin (BTC) was at an all-time high for the year 2021.
According to the firm, the transaction fee for Bitcoin back in early was $62.77, which is an all-time high. However, in a matter of six weeks, the transaction fee for Bitcoin (BTC) has dropped from $62.77 to around $7.20. The figures show that it is an 88% drop in price in a matter of six weeks.
The firm has revealed that the reason behind the decline in the transaction fee prices is the overall market activity. In recent weeks, the transaction activity for overall cryptocurrencies has declined, resulting in such a downfall.
This is because of the daily volumes that are disappearing from the cryptocurrency markets. On May 10 alone, the volume that evaporated from the market was $67 billion. At the time of writing, the daily disappearing volume is around $30 billion.
Ever since the overall cryptocurrency industry experienced a bull run since the beginning of 2021, the transaction price for Ethereum and Bitcoin has skyrocketed.
In the case of Bitcoin (BTC), its transaction fees increased three times in a matter of two weeks. This happened as a result of the Bitcoin (BTC) price surge caused due to Tesla’s announcement. In mid-February, it was revealed that Tesla had invested $1.5 billion in Bitcoin (BTC).
This caused the price of Bitcoin (BTC) to shoot through the charts and Bitcoin (BTC) surpassed its all-time high of $44k per BTC. In a matter of few weeks, Bitcoin’s price crossed the $50k per BTC barrier and went on to hit all-time highs.
On the other hand, the transaction fees for Ethereum (ETH) have experienced a 93% reduction within the last two weeks. In mid-May, Ethereum (ETH) went on to hit its all-time high crossing the $4k per ETH barrier. This phenomenon resulted in surging the transaction fees for ETH to hit an all-time high of $72.21.
As a result of the market downfall, the transaction fee for Ethereum has dropped all the way down to $4.80. The major reason behind the surge for Ethereum (ETH) price was mainly due to the adoption rate for the digital asset. It was mainly due to high adoption for non-fungible tokens (NFTs) and decentralized finance, which is powered by the Ethereum blockchain.