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Ethereum miners’ fees have dropped 65% in the past month as the demand for decentralized finance (DeFi) products has declined.
According to data compiled by on-chain market intelligence startup Glassnode, Eethereum users paid $ 57.49 million in transaction fees in October, down more than 65% from a record of $ 166.39 million in September. .
Alex Mashinsky, CEO of cryptocurrency lending company Celsius, told CoinDesk that ETH fees were plummeting along with demand for DeFi products:
Transaction costs decreased as volumes on decentralized exchanges fell, reducing demand for network bandwidth.
According to data from Dune Analytics, as reported by CoinDesk, trading volume on decentralized exchanges (DEX) fell nearly 25% in October to $ 19.4 billion, recording the first monthly decline since April.
Peak ether gas prices also dropped from 5.18 million gwei to 0.6 million in October, according to data from Bitquery.
Denis Vinokourov, head of research at Bequant, a London-based prime brokerage, told CoinDesk that the steep drop suggested less aggressive offers from users to transact on the Ethereum network.
The DeFi space exploded over the summer following the launch of the Compound Protocol COMP token and the resulting huge interest in yield farming. Total fees went from $ 22 million in the second quarter to $ 166 million in the third quarter.
Featured Image Credit: Photo via Pixabay.com
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