In recent days, fees on the Ethereum network have dropped to $ 5. This is due to the decrease in the number of transactions in DeFi applications, which returned to the levels of 2020.
In just two weeks, the volume of transactions on the Ethereum network in US dollars has decreased by 60%. The number of transactions on the Uniswap decentralized exchange is down 28% from its mid-May peaks.
“Almost all indicators of activity in the Ethereum blockchain over the past month have recorded a significant decline. There has been a rapid transition from growth to stagnation, all mempools have cleared, and the demand for transactions has dropped dramatically, ”said Glassnode analysts.
Separately, they analyzed the dynamics of transactions and the prices of tokens of popular DeFi protocols. The number of transfers, as well as their volumes, with COMP, AAVE, UNI and YFI tokens also decreased significantly.
“These metrics are simple but very effective as a high-level indicator of mass investor sentiment, and you can see how they correlate with token prices,” wrote Glassnode representatives.
Indeed, over the past month, the YFI token has lost 26%, while the AAVE token has shown a 27% decline. More significant losses were incurred by UNI and COMP tokens, which decreased by 40% and 55%, respectively.
However, both the rates of DeFi projects tokens and the number of transactions in them are still quite high. For example, the UNI token is still trading at three times the price it did at the beginning of the year.
At the beginning of the month, it was reported that fees fell on the bitcoin network as well – the indicator reached the lowest value since the beginning of the year.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
