On September 26, the average transaction fee on the Ethereum network dropped to $2.23. The last time such low values were observed was on August 9 this year.
On September 2, this indicator exceeded the previous all-time high at $10, rising to $15.21. The growth in turnover has provoked a stir around decentralized finance, in particular profitable farming.
On September 17th, there was another surge in transaction activity caused by the issuance and distribution of governance tokens of the Uniswap decentralized exchange. 138,693 airdrop participants applied for that day.
Also on September 17, the record for the daily number of transactions was updated, which amounted to 1.406 million. The previous maximum of 1.35 million transactions was set on January 4, 2018.
The overwhelming majority of DeFi protocols are based on the Ethereum blockchain, whose bandwidth is limited to 14 transactions per second. This creates conditions for increased competition for the accelerated addition of transactions to the blockchain.
Ethereum uses the auction system to prioritize them based on the fees paid. As a result, the size of commissions exceeds the limits acceptable for many users.
The decrease in fees may indicate a drop in interest in DeFi protocols.
Despite the recent rise in blocked funds to $ 11 billion, activity on decentralized exchanges continues to decline from peaks in late August. According to Dune Analytics, trading volume has dropped 38% over the past seven days, although it remains 151% higher than 30 days ago.
There is also a decline in the value of DeFi protocol tokens. According to CoinGecko, since September 1, the sector’s capitalization has decreased by $4 billion to $14.5 billion.
We will remind, earlier Forklog released material in which it figured out the reasons for the emerging DeFi-fever.