The usage fees for transactions performed on the Bitcoin and Ethereum blockchains persistently falls as the value of the cryptocurrencies are sliding down from the recent bull runs.
The downtrends in the crypto market have affected top cryptocurrencies leading the transaction rate of Bitcoin to decline by 81 percent and Ethereum by 71 percent. Data from Bitinfocharts calculated the decline, reporting that the average cost per transaction on the ETH blockchain reduced from $69.92 on May 12 to $20.06 on May 16.
Ethereum has witnessed a massive surge in value and uses in 2021 that began after the emergence of DeFi applications. Daily users that perform transactions on the blockchain have risen above 400 percent since 2020, rising from 400,000 to 1.6 million, Bitinfocharts reports.
Bitcoin similarly, has followed the Ethereum trend as the transaction fees based on its blockchain has shed off 81 percent since April. On Monday, the value of BTC hovered about $42,000, the exchange value marking a 34 percent decline since its bullish trend from April.
A Recent High, A New Low
Recently, Ethereum had stuck to hitting new all-time highs even against speculations from bears recorded on other digital assets. The value increases did congest the network as a particular swap trading on the network costs as much as $300.
On May 11, the average commission per transaction hit a new high of $51 which well surpassed its recent $20 high in February with analysts stating that the increase is a result of the surge in meme tokens.
The increasing surge in the development of Decentralized Finance (DeFi) programmes now marks the top four out of the five gas burners on the Ethereum blockchain. Thereby growing the attention of the blockchain rapidly in response to the market boom in 2021.