For the First Time In a Year, Revenue From Ethereum Transaction Extremely Low
According to a new report from Glassnode, about a month ago, miners’ transaction fee revenue fell more than 85% from 15,000 ETH per day. The seven-day average is now 1,900 ETH.
In the same month, DeFi lending protocol “Compound” released its COMP management token. So Compound unofficially launched the “Summer of DeFi” and increased demand for products that allow people to lend, borrow or exchange assets with each other instead of going to a bank. Many DeFi protocols use the Ethereum infrastructure, increasing the popularity of the network and congestion. Transaction fees rise along with the demand for the network.
The increase in the demand for transactions reduces the amount of free space. As a result, the transaction fees are increased. And vice versa, if there is a lot of free space, the commission is smaller.
Space has increased this month due to declining DeFi activity. On June 7, Glassnode wrote that there has been a historically large decline.
After Ethereum dropped to below $ 2,000, low fees and exchange rates hit the network’s miners hard.
According to data compiled by BitInfoCharts, the average transaction fee on June 20 was $ 3.50. On May 12, the commission was $ 69.92. There has not been such a minimum since January 1, when the price of one ETH was $ 724.