Owing to an unstable market in May, the transaction fees of Bitcoin and Ethereum have hit a six-month low. The fees on the BTC network have slipped down to $7.20 while that of Ether is $4.80. The overall bear trends in the cryptocurrency market has functioned as a contributing factor to the fee declines.
According to Bitinfocharts, the average transaction fee of Bitcoin witnessed an 88 percent drop in less than six weeks from $62.77 percent to $7.20. That of Ethereum tanked 93 percent from $72.21 percent in March 20th to $4.80 in about 14 days. It is noteworthy that the transaction fees of BTC tripled after Tesla announced a buy into the digital asset of $1.5 billion in the early weeks of February.
The event also triggered a spike in the value of the crypto asset as it closed off $54,410 from an initial $40,000 high in two weeks. In April 21, the trading fees of Bitcoin peaked to $62.77 after its price hit $64,804 in the 14th of April.
The surge in the transaction fees of Ethereum was as a result of its adoption for ETH-based programmes and DeFi applications. It shot from $3.50 at the start of the year to about $40,000 by the end of the second month and hit $71.21 by mid-May.
Bitcoin Closes May as its Second Worst Month
The month of May hasn’t been favourable to the leading crypto asset. The value of BTC has dropped at a 35 percent loss at the end of May 2021 after a turbulent market trend. Although the second quarter of May provided BTC with significant growth as it hit a $60,000 mark.
However, the digital asset failed to spike beyond the $60k mark before the decline. BTC slided to a $30k trading price and closed the month of May in this range. The major triggers were the rejection it received within the period from Tesla, other financial institutions and governments.
Ethereum, however did much better. After experiencing an all-time high above $4,000 in mid-May, thereafter sinking to 1,700 some days after.
The good turn of the cryptocurrency is its ability to close off the month a less than a “hundred bucks of that last monthly candle”, according to Lark Davis, a popular crypto analyst.