Commissions in Ethereum network dropped to January values

The average cost of transfer fees on the Ethereum blockchain network has fallen to January levels

The cost of transfers within the Ethereum network is falling. On Sunday, May 2, the average transfer fee on the Ethereum network was $7.9. In less than a week, commissions have decreased by almost 40%. Thus, the costs of using the Ethereum network have dropped to January 2021 levels.

It is noteworthy that the decrease in commissions is occurring against the background of the growth of the capitalization of the ecosystem. So, on Monday, May 3, the market capitalization of Ethereum reached the threshold of $341.1 billion. Along with capitalization, the price of ETH is increasing. At the time of writing, the price of ETH has set a new high at $3,202 (BitMEX).

As blockchain journalist Colin Wu suggested, the decline in commissions could be the result of innovations at the software level or the churn of users on Binance Smart Chain (BSC). As a reminder, Ethereum previously launched a new mechanism for redistributing transactions from arbitrage onchain bots. With the new technology, bots send transactions directly to miners rather than to arbitrage benefit pools.

Also, the BeInCrypto editorial board previously reported that the daily transaction volume on BSC reached 9 million units, 600% higher than that of Ethereum. Moreover, the rapid development of the ecosystem has contributed to the growth of the price of the binance coin token (BNB). The price of BNB in the BNB/USDT pair is $641. Whether BNB can outperform ETH in price, the BeInCrypto editorial board previously tried to find out from financial experts.