Ethereum network gas fees decreased by 69% compared to last month

According to Santiment, #gas network #ethereum  (ETH) fees have decreased by nearly 70% in 1 month. In early May, Ethereum fees hit a 2023 high of $14. However, by the end of the month it had dropped below $5.

In its report Santiment said:

Ethereum network gas fees have fallen again after a 2023 high of $14 per transaction. Additionally, the number of ETH on exchanges is at an all-time low of 9.9%.

Ethereum ended May 2023 with a price around $1850.

Ethereum gas usage by transaction type

Glassnode has stated which assets contribute to gas #Ethereum at various times. Back in 2017,2018 ICOs contributed 40% of Ethereum fees. These gas fees mainly come from ERC-20 token moves.

In the years that followed as demand for the #ERC-20 token began to decline, DeFi rose to prominence in 2020. The DeFi wave peaked in June 2020 to 2021 contributing 30% of Ethereum gas fees. DeFi token performance has decreased over the past two years.

Since mid-2021, NFTs have become prominent in the market. The NFT wave then cooled off in late 2022. Stablecoins similarly experienced a wave of increased user demand in 2020. Galssnode said: “the decline in gas from stablecoin transactions has shows changing user needs.” Stablecoins are now used less for payments and are instead used as storage.