Ethereum Fees Fall to $1 – Trustnodes

Ethereum fees have fallen to their lowest level since July 2020, just as the bull was about to begin.

A simple transaction now costs 25 gwei, worth $1.17, and even a high priority transaction costs only $1.21.

For more complex transactions like an NFT sale or a swap, it costs just $10, down from a brief peak of as much as $400.

So ethereum is usable again for the first time in two years as transactions fall to one million a day, down from a peak of 1.7 million in April 2021.

That means ethereum currently has nearly twice as much capacity as it is using, operating at circa 60% capacity.

Fees therefore are falling as there isn’t too much competition for space following a crash of some 60% in eth’s price from $5,000 to now below $2,000.

Which means it is now finally possible to engage in lego strategies even with small sums of say $200, though preferably $1,000.

That’s for example locking some eth to mint sUSD which can buy some sAPPL which can be used as collateral to buy some CRVs that are locked for Convex and keep on building the castle to the point one dollar is $10 or more of assets.

That was sufficiently lucrative during bull for plenty to pay $400 per transaction. During bear, your collateral might get called and your funds lost.

At least eth is usable now though for transfers, but the blockchain capacity limit is clearly putting a limit on the bull as well with much of defi in bear for two years now partly because it became too expensive to use.

Will low fees make it bull? Potentially, especially if we get some price stability with cryptos now sidewaying.

Defi may well therefore be counter-cyclical, though it remains to be seen, but some projects and corners do very well during bear.

It’s just about keeping your eyes open to find them, which of course is very difficult, and yet it can be very lucrative.