Ethereum gas fees hit a new low since 2021, it’s time to experience all DeFi applications

Ethereum gas fees hit a new low since 2021, it’s time to experience all DeFi applications

The cryptocurrency market has been declining for nearly 2 weeks. Bitcoin has fallen by more than 20% from the high point. Most DeFi tokens are not immune. If there is anything to make DeFi players happy at this time, then it must be It is the reduction of Gas cost.

“The price of ETH gas dropped to its lowest point since the beginning of 2021.”

According to data from the Gasnow website, on April 25, the gas price for a “Fast” transaction was 42 Gwei. On April 20, in the “fast” mode, the average gas price of Gas was 226 Gwei. In the past 5 days, Gas prices have fallen by 81%. This is the lowest position since 2021.

Why did the Ethereum gas fee suddenly plummet?

1. The market is cooling down

The cryptocurrency market has fallen sharply in the past two weeks. Bitcoin fell from a high of about $64,600 on April 14 to a low of $48,000 on April 23, and its market value fell below the $1 trillion mark again. ETH fell from a high of US$2,600 to US$2,100. In addition, mainstream DeFi tokens such as UNI and SUSHI fell sharply. Analysis believes that mainstream currencies have plummeted, leading to low market sentiment. According to CoinMarketCap data, ETH’s trading volume has fallen by 20% in the past 24 hours.

2. Miners raised the ETH Gas limit to 15 million for the first time

On April 23, data showed that Ethereum miners had increased the gas limit from 12.5 million to 15 million to ease network congestion caused by increased activity on the chain. The Ethereum Gas limit sets an upper limit on how many operations can be performed in each block. Ethereum founder Vitalik Buterin proposed to increase the limit on Reddit last week to take into account the recently activated code optimization on the network. V God said:

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“Now that the blockchain has become more secure, we can increase the gas limit, which makes the use of every application cheaper.”

On April 15, Ethereum executed the Berlin hard fork upgrade at block height 12244000. Although some Ethereum clients experienced some problems after the upgrade, as the problem was resolved, the network gradually stabilized and miners began to increase the gas limit.

On April 21st, Ethereum miners began to increase the gas limit to 13 million, while the previous year has remained at 12.5 million, which indicates that miners have begun to vote in favor of increasing the gas limit. Only 51% of the miners need to vote to change the gas cap to increase the total capacity by 17%. Bitfly, the parent company of the Ethermine mining pool, said at the time: “After the Berlin hard fork improves efficiency, we believe that increasing the Ethereum Gas limit from 12.5 million to 15 million is cost-effective.”

The Ethereum community welcomes low gas fees

With the Ethereum Gas fee reaching its annual low, people who were afraid to experience DeFi applications because of their distressed fees began to eagerly try.

“The price of Ethereum Gas has dropped to 44 gwei. I really want to experience all DeFi applications tonight.”

Various DeFi applications have also begun to pull new in the Twitter community, inviting users to seize the opportunity to take advantage of the low Gas fee to register the registration, transfer the transfer, deploy the deployment, and do all kinds of things that need to be paid. Up.

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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.