Ethereum transaction fee revenue at a one-year low

Maybe Yogi Berra was thinking ahead of Ethereum when he said, "No one goes there anymore – it's too crowded". Faced with competition from networks targeting high congestion and double-digit transaction costs, blockchain has gone the other way. According to a new report from Glassnode, miners' revenue from transaction fees has dropped more than 85% from 15,000 ETH per day a little over a month ago. The seven-day average is currently at 1900 ETH. “We need to look at June 2020 before 'DeFi Summer' to find comparable transaction fees levels paid,” the analytics firm wrote. This was the same month that DeFi lending protocol Compound released the COMP governance token, unofficially launching the "DeFi Summer" and fueling demand for products that allow people to borrow, lend or exchange assets with one another through a bank or bank. other financial intermediaries. Many DeFi protocols take advantage of Ethereum's infrastructure, increasing the network's popularity while increasing congestion. Transaction costs increase with network demand. Whether you bid on an NFT or borrow from Compound, the more demand there is to force trades, the less room there is to include additional trades in a block. As a result, transaction costs increase. If there is more available space, the rates go down. The DeFi Kid: Meet the 13-Year-Old Kid Who Created a $7 Million Money Manager on Ethereum. As discussed earlier this month, more space is available as DeFi activity is declining. “Last month was an all-time high,” Glassnode wrote on June 7. According to DeFi Pulse data, $1-2 billion in value fluctuated around Ethereum-based DeFi protocols in June. Known as "total value locked in" (TVL), this figure has grown to over $50 billion today. However, TVL hit as high as $86 billion on May 11, the day after it hit Ethereum.

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