Ethereum network fees dropped to a six-month low

This may be caused by a falling interest in the NFT

09.03.2022 - 13:15

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1 min

What’s new? The analytical company Arcane Research has presented a report that says about declining fees on the Ethereum network. In the report, Arcane uses data from Coinometrics, which shows that the seven-day average of transaction fees on Ethereum is at its lowest level since August 2021. The figure has been falling precipitously since the second week of January.

Arcane Research’s report

What are the reasons for the decline? The decline in the fees may be due to a drop in interest in the NFT. Non-fungible tokens, which are issued in the form of digital art objects, appeared on the Ethereum blockchain. They became popular in 2021. This has led to an increase in the number of transactions on the network.

According to analysts, another reason can also be seen as competing networks Solana and Avalanche have wrested market share from Ethereum. They offer similar services to GameFi and NFT, with much lower fees and higher speeds.

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