Fees in Ethereum Blockchain Are Falling Fast, and Miners Can Drop the ETH Rate

Fees in Ethereum blockchain are falling fast, and miners can drop the ETH rate

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The average commission on the Ethereum blockchain has decreased more than 6 times over the month, from $14.5 to $2.3 per transaction.

Miners lose income and may put their ETH to the market, which will negatively affect the price of the leading altcoin.

The transaction value has been on the rise this year due to the growing popularity of DeFi projects, most of which run on the Ethereum blockchain. The network was overloaded; to speed up the transactions, one should pay increasing fees. The excitement led to the fact that for one transaction on the Uniswap decentralized exchange, traders had to pay GAS in the amount of $60. Other platforms were also forced to raise rates for operations with ETH, including withdrawals. But the miners got much more profit than usual. It was reported that on September 1, the total profit of miners on the Ethereum blockchain reached a record value of $17 million. At the same time, the cost of transactions also set a record, reaching $15, which is 100 times more than one had to pay for a transaction at the beginning of the year.

But now, finally, the prices for transactions have dropped, to the delight of ETH holders. Although the commissions are still 20 times higher than in January. Observers attribute this situation to the launch of testnet called Spadina. The launch was successful, although not with as many validators as expected. The validator participation rate is estimated at 35%. In total, they contributed over 91K ETH for staking, the total number of validators is 2856.

Spadina is the final testnet before the phase zero transition of the Ethereum network to the Proof-of-stake consensus. Although nothing will happen to the old blockchain, it will be added to the new network as a side chain (shard). However, perhaps not all users know this, this is why the load on the network decreases and, as a result, the commissions come to a lower level. Analysts suggest that after record earnings, ETH miners will be unhappy with the current state of affairs and may put their coins to the market. In this case, the ETH price will go down.

Meanwhile, the successful launch of the testnet is a reason to hope that the Ethereum network update is proceeding successfully and according to the roadmap. This increases interest in the coin, Ethereum 2.0 will have 1000 times the current throughput, according to Vitalik Buterin. Market participants will buy ETH in the hope of further growth of the coin. So far, two oppositely directed price movements are balanced. Over the week, ETH has grown by only 4%.